Another Rejection Ahead Of 95.00 For Futures Before Pull Away From Best Levels

Gilt futures managed to have an incremental look beyond early morning highs but topped out ahead of the 95.00 figure once again. The contract last prints +60 or so, ~40 ticks best off best levels.

• Cash Gilts run 8bp richer to 3bp cheaper, with bull steepening morphing into twist steepening, as a pivot appears around the 10-Year zone.
• Swap spreads are generally a little narrower from the 10-Year point to further out the curve, while shorter dated swap spreads are a little wider.
• On the headline front, public sector pay discussions have evolved in a manner that is in line with previously outlined reporting.
• BOE-dated OIS has moderated from dovish session extremes, recapturing the 6.20% level in policy rate terms.
• SONIA futures run flat to +121bp through the greens, off of richest levels of the day.
• The syndicated tap of the 0.625% Mar-45 linker was sized at GBP3.5bn, in the middle of the range we pencilled in, pricing has just taken place.
• U.S. data and Fedspeak will be eyed through the remainder of the session.