A Touch Firmer Early On, BoE’s Pill To Speak Imminently

Gilt futures blip lower at the re-open, but that move fades, as participants look to wider core FI markets for a sense of direction early today, with ECB Executive Board member Schnabel on the wires at present.

• That leaves the contract +10 or so, within yesterday’s range, while the major cash benchmarks are flat to 0.5bp richer.
• Karen Ward, chief EMA market strategist at JPMorgan Asset Management and advisor to Chancellor Hunt, has suggested that the UK should consider lifting the BoE’s inflation target from 2% once price pressures have been curbed.
• Comments from BoE’s Pill will cross imminently, providing the highlight of today’s local docket.
• Most of the DMO's FQ3 calendar met expectations, although the lack of a new index-linked syndication and explicit mention on 30+ year potential tenders was noted.