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Continuing To Coil

GILTS

Cash gilt yields are within 1.5bp of Friday’s close, with a very modest twist steepening seen on the curve.

  • Gilt futures stick to the 29-tick range identified early on, last dealing -5 on the day, meandering around unchanged levels.
  • Well-defined technical parameters remain intact in the contract.
  • Local headline flow has been light since the open.
  • SONIA futures show flat to -2.0 through the blues, comfortably off session lows.
  • BoE-dated OIS prices ~66bp of cuts through ’24, with the first 25bp cut once again fully discounted come the end of the Aug ’24 MPC.
  • Medium-dated APF sales from the BoE are due this afternoon.
  • For a full preview of this week’s UK economic data, BoE speak and supply matters please see our latest Gilt Week Ahead piece.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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