Biased Cheaper & Flatter To Start

The broader moves in core global FI markets bias Gilt futures lower at the re-open, with the contract moving back below 95.00, but remaining well within the confines of the range observed on Tuesday, when strong demand at the long end green Gilt auction provided some support. Cash Gilts sit 2-4bp cheaper across the curve, bear flattening after yesterday's steepening impulses faded into the close. SONIA futures see some light twist steepening, sitting +0.5 to -3.5, while BoE-dated OIS sees terminal rate pricing push back to the ~6.35%. Local news flow has been limited, with continued focus on issues for one of the major utility providers and a potential BoE clampdown on international bank branches, neither of which should be meaningful for Gilts. Final services PMI data and '25 Gilt supply provides the local highlights today.