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CPI Drivers Bear Flattening

GILTS

Cash Gilts bear flatten, cheapening by 5-14bp at the open, adjusting to the hotter than expected CPI print. The move drives the 2-/10-Year curve to fresh cycle extremes (in what is once again the deepest level of inversion witnessed since ’00), while the 5-/30-Year spread still sits ~50bp off of its October extremes, even as it moves the deepest level of inversion witnessed in ’23. Gilt futures are a big figure lower, but ~45 ticks off opening lows, failing to challenge their recent base.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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