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Bid Extends On Softer Than Expected U.S. CPI

GILTS

Gilt futures press to fresh session highs in the wake of the softer than expected run of U.S. CPI data.

  • The bid in the contract stops just shy of initial technical resistance in the form of the Nov 9 high (96.14), topping out at 96.11 for now before backing off to trade around 96.00.
  • Cash gilts sit 8-9bp lower in yield terms on the day, reaching fresh session lows, with the curve experiencing a more parallel shift after flattening early on Tuesday.
  • SONIA futures last print unchanged to 12bp richer through the blues, sitting a touch shy of post-data bests.
  • BoE-dated OIS is now little changed to 8bp softer on the day, with the contracts covering the MPC meetings in the back end of ’24 seeing the most movement in the liquid area of the strip.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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