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Cross-Market Impetus Sees Gilts Off Early Highs

GILTS

After a brief show through yesterday’s high and initial technical resistance (96.05) at the open, weight in wider core global FI markets applies pressure to gilt futures, leaving the contract -5 or so, just above 95.80 and ~30 ticks shy of early highs.

  • Cash gilt yields run flat to 2bp higher, with the curve bear flattening.
  • SONIA futures twist flatten, operating off best levels given the downtick in gilts, last printing -1.5 to +1.5 through the blues.
  • BoE-dated OIS runs flat to 2bp firmer on the day last.
  • Nothing in the way of comments observed from BoE chief economist Pill on the wires yet, with his appearance in front of the ICAEW UK Regions Economic Summit (topic: State of the Economy and feedback on the ICAEW Business confidence monitor) ongoing.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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