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Cross-Market Outperformance Maintained

GILTS

Gilts maintain their relative cross-market outperformance given the impulse from this morning’s softer than expected domestic GDP data.

  • The previously flagged pullback from best levels extended further, although early session lows in futures held, before a bounce to mid-range.
  • The contract last deals +15, while cash benchmarks are 0.5-4.5bp richer, with the front end outperforming on the post-data dovish BoE repricing (which is off extremes), while intermediate lag on the back of disappointing demand at the latest round of ’33 supply.
  • PAOF results are due shortly, but this afternoon’s focus will centre on U.S. CPI.
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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