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Away From Lows As Bunds Firm

GILTS

Gilts are also a little more resilient than U.S. Tsys in recent trade looking more to their German counterparts. That leaves UK yields 0.5-3.0bp higher on the day, with light bear flattening in play. Meanwhile, gilt futures are +5, 5 ticks off the top of their ~55 tick session range, still sticking within Friday’s boundaries.

  • The recently released round of BoE APF sales covering long bucket bonds provided an average cover ratio. There was no impact on the 5s30s curve.
  • BoE dove Dhingra failed to provide much in the way of meaningful communication for markets earlier today.
  • SONIA futures last show flat to -4.0bp on the day, recovering from session lows alongside gilts.
  • BoE-dated OIS is little changed to ~3bp firmer through ’24 MPC contracts.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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