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BONDS: Fresh Bid Seen

BONDS

TY futures move back to pre-CPI levels as the details of the data continue to be digested.

  • Zooming out, U.S. CPI and labour market data have softened enough to justify cuts, but don’t seem soft enough to endorse current market-implied pricing of the Fed policy rate path, at least at this juncture.
  • Gilts the only major 10-Year futures contract to hit fresh session highs, with UK paper still outperforming curve-wide in the wake of this morning’s UK CPI data. ~48bp of ‘24 BoE cuts priced, comparing to ~44bp late yesterday and a little over 50bp In early London trade.
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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