Early Steepening Holds, Fiscal Speculation & Cross-Market Moves Eyed

We haven’t had much in the way of market moving UK-specific headlines since the gilt open, leaving cross-market moves and weekend fiscal speculation at the fore.

• Gilt futures have oscillated in a narrow ~30 tick range through the early rounds of Monday trade, with the contract last showing -40, ~5 off lows.
• Cash gilts yields are 2-6bp higher with the curve steepening.
• 2s10s last prints at -36bp, the best part of 20bp shy of last week’s multi-month high.
• 5s30s last prints at +53bp, ~4bp off its own multi-month steeps.
• SONIA futures run +0.5 to -4.5 through the blues, with the early twist steepening theme holding there.
• The BoE-dated OIS strip also steepens on the day, last printing little changed to 3.5bp firmer, a little off last week’s dovish extremes.
• Comments from BoE chief economist Pill and long-dated BoE gilt sales headline the domestic docket later in the day.