A Tight Start, U.S. Data Eyed

Gilts consolidate within yesterday’s narrow range, last little changed around 97.70.

• Tuesday’s range extremes still provide the initial technical lines in the sand (resistance at 97.86 & support at 97.08), with recent gains still deemed corrective at this juncture.
• Gilts yields are little changed to 1bp higher across the curve, still sitting some way off May’s lows, despite the recent rally.
• SONIA futures trade close to unchanged, with some modest pre-gilt open weakness pared.
• BoE-dated OIS prints roughly in line with pre-gilt open levels, last showing ~38bp of cuts through year end.
• Political matters continue to dominate UK headline flow, although there isn’t much in the way of market moving matters to flag on that front.
• The initial rounds of post-decision ECB rhetoric have generally underscored the idea of no pre-commitment to further rate cuts, along with the need for a gradual pace if/when further cuts are deemed necessary.
• The local calendar is very limited into the weekend, which should leave focus on wider headline flow/cross-market spill over and the impending U.S. NFP release.
• Further out, the S&P-KPMG-REC report on jobs will hit in the early hours of Monday morning.