A Touch Softer Alongside Peers

Gilts follow core global FI peers lower at the open.

• Some focus on European & U.S. supply provides a likely source of pressure.
• Futures -12 at 98.06, moving away from initial resistance at yesterday’s high (98.27).
• Our technical analyst notes that the short-term outlook for the contract remains bearish, despite the recent gains. Initial support at the July 4 low (97.32).
• Yields are flat to 1bp higher across the curve.
• Little in the way of meaningful UK event risk scheduled for today, which will leave focus on wider macro matters, headlined by comments from Fed Chair Powell.
• We remain on the lookout for the syndicated tap of the 1.25 Nov-54 I/L gilt.