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BoE Pricing Now A Little Firmer, Gilts Cheapen A Touch, CPI Outweighs China Worry

GILTS

Gilt futures unwind the uptick that came at the open.

  • That leaves the contract -10 after a brief showing through yesterday’s high.
  • The major UK cash benchmarks run 1.5-3.0bp cheaper as the front end leads the move.
  • Participants are weighing up the lead from the Asia-Pac bid in U.S. Tsys (driven by China worries) against slightly firmer than expected domestic CPI, which included higher services inflation.
  • SONIA futures sit -5.5 to +1.5 through the blues, twist flattening. Contracts trade at/near session lows.
  • BoE-dated OIS terminal policy rate pricing moves back above 6.00% after a show below post-CPI.
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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