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Below yesterday's low on the open

GILTS
  • Gilts open just below yesterday's low, following the moves since the close in both Treasuries and Bunds following Fed Chair Powell's press conference comments that now is not the time to pause rate hikes.
  • This morning gilts have traded in a 102.09-102.53 range and at the time of writing sit at 102.22.
  • The next immediate support comes in at Tuesday's low of 102.00 ahead of Monday's low of 101.76 and the Oct 27 low of 101.38.
  • In early trading we have seen 5+ year yields move 11-12bp higher with the 2s5s curve steepening by 3bp.
  • The MPC policy announcement at 12:00GMT and presser at 12:30 are the main events of the day with a 75bp hike widely expected (although we see risks of a smaller 50bp hike).

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