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Bid Extends

GILTS

Gilt futures have a look above yesterday’s high as the post-Budget bid extends alongside a wider rally in core global FI markets, although the move is limited and fades from best levels.

  • Contract last +6 at 99.35 vs. highs of 99.48.
  • Next resistance seen at 99.52, the 1.618 retracement of the Feb 26-29 bear leg.
  • Cash gilt yields are 1.5-3.5bp lower with the front end now outperforming,
  • Medium-term paper now lags given the aforementioned DMO syndication plans.
  • 10s look through yesterday’s low, last 3.99%. Bulls target the Feb 15 low (3.973%).
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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