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Early Rally Unwinds

GILTS

Gilts initially move higher tracking the rally in EGBs, before those moves stalled/moderated.

  • Futures last unchanged at 99.80 (early range 99.76-100.08).
  • Familiar technical levels untested/intact.
  • Cash gilt yields are little changed to 1bp lower across the curve.
  • SONIA futures are -0.5 to +1.5, off early highs.
  • BoE-dated OIS little changed showing ~71bp of ’24 cuts, first cut fully discounted come the end of the August MPC.
  • Local economic activity data had little impact, we had always noted that yesterday’s labour market data would be more important for markets/BoE policy.
  • The local calendar is effectively empty for the remainder of the day.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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