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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GILTS
As mentioned elsewhere, Gilts lead the core global FI rally after the 4.50% mark held in 10-Year yields and hawkish participants failed to force a break above 6.00% in BoE terminal rate pricing. Cash Gilts run 12-14bp richer across the curve at typing, with 2s back below 5.00% in yield terms.
- Owing to the failure to break the psychological levels mentioned above, there has probably been a degree of short Gilt/paid OIS position cover kicking in ahead of tomorrow’s CPI release (see below for latest MNI Gilt Positioning Indicator comments), which comes just over 24 hours before the BoE decision (all BBG survey respondents look for a 25bp hike, while the market continues to price ~30bp of tightening).
- Domestic headline flow has also been incrementally supportive, with Chancellor Hunt playing down any hopes of direct fiscal support for struggling mortgage owners owing to inflationary worries (as was outlined in an FT sources piece over the weekend), while grocery price inflation has eased further. Re: the latter, Hunt said that price caps would be an incorrect method to tackle any high pricing in supermarkets, although confirmed that he will discuss potential alternatives with regulators next week.
Fig. 1: Latest MNI Gilt Positioning Indicator Comments (Published On 19 Jun ’23)
Source: MNI - Market News/Bloomberg
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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