Early Range Intact, Tracking Bunds

Gilts track Bunds, lagging OATs & peripherals as European equities rally.

• Futures stick to the range established in early trade, last +9 at 100.03.
• Initial technical levels (100.80 & 99.54) remain untouched.
• Any extensions through session highs in Bund & TY futures would likely spill over into gilts.
• Gilt yields little changed to 1.5bp lower across the curve, modest outperformance in the front end.
• Little tangible impact from this morning’s higher-than-expected PSNB data, although risks re: an increase in gilt issuance are noted.
• U.S. risk events set to dominate today, with little of note on the local calendar until tomorrow’s flash PMIs.