Firmer Alongside Global Peers, Friday’s Highs Cap Futures

Gilt futures follow core global FI markets higher to start the week, testing Friday’s highs, which hold in the first instance.

• Futures last show +55 or so, while cash gilts are 2-3bp richer across the curve in what has been a fairly parallel shift.
• Domestic weekend headline flow shouldn’t be particularly market moving for gilts, with the Labour Party conference and capital injections for troubled Metro Bank dominating there. That should leave broader macro matters at the fore.
• SONIA futures are 0.5-4.5bp richer through the blues, flattening, but off richest levels of the day.
• BoE-dated OIS softens by 0.5-4.0bp.
• BoE’s Mann will provide comments via a panel at the U.S. NABE meeting later today, they will cross at 21:00 BST. The panel will discuss the topic of ‘What have we learned about Inflation Dynamics?’