Bulls Test Yesterday's High In Futures, Bid On Global FI Lead

Early gilt trade sees the space underpinned by moves in wider core global FI markets, while the softer-than-expected 3-month/3-month domestic GDP and index of services data may be getting more attention than the headline monthly beats after some negative revisions.

• Bulls manage a test of yesterday’s high in gilt futures before a modest pullback. Familiar technical parameters remain untested this week.
• The contract last shows just below 100.40, up the best part of 60 ticks on the day, ~10 ticks shy of the peak of its early 50-tick range.
• Cash gilt yields are 5-6bp lower across the curve.
• The DMO has recently announced that the Bank of Montreal London Branch will be recognised as a retail GEMM from Monday 15 January.