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Curve A Little Steeper, Early Rallied Countered By Bund Weakness

GILTS

Spill over from weakness in Bunds helps counter early buying in gilts.

  • Futures -4 at 98.28 (range 98.22-44).
  • Cash gilt yields 1bp lower to 0.5bp higher, curve twist steepens.
  • 2s10s and 5s30s remain comfortably below Feb highs.
  • SONIA futures +1.0 to -1.0 on the day,
  • BoE-dated OIS shows ~62bp of ’24 cuts little changed on the day.
  • Domestic fiscal speculation and firmer Rightmove house price data have little impact.
  • The BoE will sell GBP750mn of medium-term gilts from its APF later today.
  • Elsehwere, the DMO will hold its quarterly consultation meetings with investors (15:30) and GEMMs (17:00) in which it will discuss more details regarding FQ1 (Apr-Jun) issuance. We will post more on this later.
  • Further out, Wednesday’s UK CPI release and Thursday’s BoE decision provide the domestic highlights of the week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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