A Touch Cheaper To Start, Pill Comments Eyed

Gilts are biased lower by the broader gyrations in global core FI markets since yesterday’s close, although nudge away from early cheaps in line with U.S. Tsys.

• Local headline flow has been dominated by the digestion of yesterday’s BoE decision and resultant BoE rhetoric, while cost of living pressures continue to garner the bulk of the wider general interest amongst the public.
• Market participants look ahead to comments from BoE chief economist Pill (12:15 London). A reminder that Pill has positioned himself on the hawkish side of the BoE spectrum since assuming his role.
• UK GDP data was generally softer than expected (in March & therefore Q1), but broadly in line with the BOE's updated MPR forecast, with the print driven by weakness in services in March, as opposed to the production side.
• Gilt futures sit ~10 ticks lower on the day, while broader cash benchmarks are 1-2bp cheaper.
• Terminal rate pricing on the BoE-dated SONIA OIS strip firms a touch this morning, given that global core FI is back from yesterday’s richest levels and in lieu of comments from Fed’s Bowman, showing just above the 4.90% mark once again.