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A Touch Firmer

GILTS

Wider core global FI and cross-asset flows help facilitate a fairly contained rally in gilts in recent trades.

  • Gilt futures trade to fresh session highs at 98.41, before backing off to the 98.30 area. Cash gilt yields are 2.0-3.5bp lower on the day, with the front end outperforming.
  • The recently covered comments from noted BoE dove Dhingra, via the FT, further cemented her well-known standing on the MPC’s hawk-dove spectrum (she voted for a cut last week). The fact that her stance is well-defined provided only very modest movement in STIRs & gilts.
  • A reminder that Dhingra will appear at an MNI event on 21 February.
  • SONIA futures are flat to 6.5bp firmer on the day, while BoE-dated OIS has steadied, pricing a little under 85bp of cuts through ’24.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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