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Bounce From Cheaps Fades

GILTS

The early bounce after the opening gap lower has faded, with weight in the wider core global FI space countering any Gilt-specific matters that facilitated the limited recovery. That leaves futures a little above worst levels of the day, -15 or so, while cash trade sees the major benchmarks running ~1bp cheaper in what has been a parallel shift across the curve.

  • SONIA futures are flat to -6.0, while BoE-dated OIS shows ~23bp of tightening for next month’s meeting, with terminal policy rate pricing edging closer to 5.85% after yesterday’s limited foray below 5.75%.
  • Participants await comments from BoE’s Pill, while cross-market impulses will be eyed ahead of and after the impending U.S. NFP release.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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