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Bull Steepening On Bailey

GILTS

Gilts rally early today, with the previously covered comments from BoE Governor Bailey feeding in.

  • Futures stick comfortably within yesterday’s range, last +25.
  • Cash gilt yields are 3.5-5.5bp lower across the curve, bull steepening.
  • SONIA futures roughly in line with pre-gilt open levels, last flat to +5.0.
  • BoE-dated OIS shows 81.5bp of ’24 cuts.
  • The DMO’s FQ2 operational calendar didn’t provide much in the way of surprises.
  • Lower tier UK data is due ahead of the weekend, with already released retail sales data not as soft as expected and the monthly GfK survey pointing to households having a more positive opinions re: their financial situation.
  • The BoE will announce its Q2 APF sales schedule later today. Our full expectations are outlined on page 3 of this document.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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