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DMP Survey Helps Apply Some Fresh Pressure

GILTS

Gilts sees some cheapening on the back of the BoE DMP data, with futures registering fresh session lows, last -15 (sticking comfortably within yesterday’s range).

  • The space had stabilised alongside wider core global FI after the initial cheapening, although the opening gap lower in futures wasn’t closed at any point.
  • As noted elsewhere, mixed Decision Maker Panel data for September will be a little concerning for the BoE as expected wage growth and realised wage growth both picked up relative to August data (see our full write up covering that release here). This will be facilitating fresh pressure on gilts.
  • Cash gilts run 3-5bp cheaper on the day, bear steepening.
  • SONIA futures are now flat to +1.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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