BoE Pricing Continues To Weigh On Front End

The front end of the Gilt curve remains heavy as BoE-terminal policy rate pricing holds around/just above the 6.30% mark, although the previously outlined U.S. data allowed the space to stabilise, before cheapening came back to the fore. Cash Gilts run 3-10bp cheaper across the curve, bear flattening, operating a little off session cheaps. The 2-/10-Year yield curve operates 8-9bp off inverted cycle extremes.

• Gilt futures are a little above session lows, last -85 or so, with the technical trend needle still pointing south and little in the way of meaningful technical support apparent in the immediate space below today’s worst levels.
• Local headline flow remains sparse, outside of continued property market worry, although this morning’s Nationwide house price data fared a little better than was feared.