Bear Flattening Early On

Gilts bear flatten, as the major benchmarks run 2-5bp cheaper, while futures are around 15 ticks lower on the on the session, more than unwinding the modest uptick seen around the open. The space seems happy to take its cues from Bunds thus far.

• BoE-dated OIS is little changed on the day, while the SONIA strip runs flat to -4.0 through the reds.
• There hasn’t been much in the way of domestic headline flow to digest, while the domestic docket is empty into the weekend. That will leave market participants to headline watch/assess cross-market impulses ahead of the impending U.S. NFP release.