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Final PMI Helps Cap Recovery

GILTS

The 0.4ppt upward revision in the final UK manufacturing PMI limits the recovery in gilt markets, although the move is modest given the scale of the revision and the lack of meaningful fresh information in the release.

  • •Futures last -30 at 97.79 (97.42-94 range), with the bearish technical theme intact. Yesterday’s low was not challenged during the early weakness.
  • •Cash gilt yields are 1.5-3.0bp higher on the day, with the 7- to 10-Year sector leading the sell off.
  • •SONIA futures are flat to -2.0 through the blues.
  • •BoE-dated OIS shows 63bp of cuts through ’24.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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