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Challenging 108.00 psychological support

GILTS
  • Gilt futures are now challenging the 108.00 psychological support level, hitting a low of 107.85 in the immediate aftermath of the beat for Eurozone CPI.- Next support below here is at 107.36, the 1.00 projection of the Aug 22 - 24 - 26 price swing.
  • As we noted earlier (see here), the ONS decision on treating the energy support scheme as a fiscal transfer rather than lower prices has weighed on gilts today, with 2y and 10y gilt yields both over 10bp higher on the day (against 3bp moves for Schatz and 10y Bund yields).

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