Early Rally Fades

Gilt futures only managed a limited and brief showing above 97.00 at the open, before backing off to last trade around 96.70.

• Familiar technical parameters remain untouched in the contract, with the bearish technical backdrop intact.
• Cash gilt yields are 1.0-1.5bp lower across the curve at typing.
• Suggestions that the Israeli response to the recent Iranian attack were tame, the lack of damage to Iranian nuclear facilities and apparently limited Iranian appetite for an immediate response counter the initial rally in core global FI markets.
• SONIA futures have unwound all of their early rally to last print flat to -1.0.
• Looking ahead, comments from BoE’s Ramsden & Mann headline the domestic calendar today.
• Geopolitical headline flow will receive heightened interest given overnight events.