Back From Session Cheaps

Gilts trim some of the early cheapening move, but still sit comfortably below flat on the day, with the early bear flattening impulse still apparent but back from extremes as the major benchmarks sit 5-8bp cheaper. Futures are now ~70 ticks lower on the session, ~75 off session lows, with the recent session range in the contract remaining intact.

• Markets continue to weigh up the degree of future tightening now priced and what such a move in interest rates means for households/the economy.
• BoE-dated OIS moves back from extremes, last showing 33bp of tightening for tomorrow & ~150bp of cumulative tightening before terminal is reached, with the latter nearly 15bp back from hawkish extremes, as it settles back around the 6.00% level in BoE policy rate terms.