April 16, 2024 12:20 GMT
Bear Flattening, Hawkish BoE Repricing Holds, Long End Yields Off Fresh '24 Highs
GILTS
Gilt futures edge away from session lows with that next technical support level (96.30) untested.
- Cash gilt yields are 1.5-4.5bp higher with some bear flattening kicking in as 10+-Year yields move away from this morning’s fresh year-to-date highs and hawkish BoE repricing is maintained post-wage data.
- SONIA futures are flat to 7.5bp softer on the day.
- BoE-dated OIS now shows ~44.5bp of ’24 cuts, with Sep ’24 MPC pricing threatening to show less than 25bp of cuts.
- Comments from incoming BoE Deputy Lombardelli provided little for markets to trade off.
- Comments from BoE Governor Bailey (18:00) are due ahead of tomorrow’s local CPI data.
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