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Curve Twist Steepens, Stabilsation Seen After Early Softening

GILTS

The recovery from lows in core global FI markets was also seen in gilts, although futures got nowhere near closing the opening gap lower before the move ran out of steam and the drift lower resumed.

  • That leaves futures running -40 or so. ~25 ticks off worst levels of the day. A clean move through today’s low would allow bears to turn their focus to the Oct ’22 LDI crisis base.
  • Cash gilts run 0.5bp lower to 5.5bp higher, twist steepening.
  • The 2s10s curve tests recent highs, but is still comfortably in inverted territory.
  • SONIA futures also twist steepen, as do BoE-dated OIS.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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