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GILTS

Gilts are more willing than Bunds when it comes to extending on the rally in the wake of the softer than expected U.S. S&P Global PMIs. It is also worth noting that bonds were already bid into the release.

  • Gilt futures have a shallow look above 94.00, registering fresh session highs, before moving back below the figure. Stabilisation above the figure would allow bulls to focus on 94.89, the 50-day EMA.
  • Cash benchmarks run 12.5-18.5bp richer on the day, with the curve bull steepening.
  • SONIA futures are flat to 26.5bp richer on the day, with the back end of the reds and greens leading.
  • Most of the liquid BoE-dated OIS contracts hit fresh session lows post-U.S. data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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