Early Uptick Met By Sellers

Gilt futures initially ticked away from yesterday’s lows at the open, although the bounce remained shallow and has started to reverse.

• The contract last shows -15 at 98.18, just off the base of its early 30-tick range.
• Cash gilt yields are ~0.5bp lower across the curve.
• A reminder that Wednesday saw the following moves:
• 2- & 5-Year yields: Largest daily net gain since August ‘23
• 10-Year yield: Largest daily net gain since Feb ‘23
• 30- & 50-Year yields: Largest daily net gain since July ‘23
• SONIA futures last show flat to 3.5.
• BoE-dated OIS now shows ~104bp of cuts through ’24.
• Overnight, RICS house price expectations weren't as soft as feared, but still remained comfortably in negative territory.
• UK PM Sunak’s Rwanda Bill passed through the commons after a tumultuous couple of days that saw Conservative Party resignations and rebel votes against the bill.
• The domestic docket is very limited today, with only the BoE survey on credit conditions due.
• That should leave wider macro themes/market moves at the fore when it comes to headline drivers.