Cheaper Start, Futures Respect Yesterday’s Low

Gilts follow core global FI markets cheaper at the re-open, leaving futures -25, with yesterday’s low holding thus far.

• The major cash benchmarks are ~3bp cheaper.
• SONIA futures are little changed to 3bp cheaper.
• BoE-dated OIS remains in familiar territory, showing ~21bp of tightening for next month and terminal policy rate pricing of just under 5.80%.
• RICS house price balance data was softer than expected overnight, with little in the way of market moving domestic headline flow seen since yesterday’s close.
• The local docket is empty today, with macro focus on the U.S. CPI readings.