Firmer Alongside Peers

Gilts firm alongside global peers, supported by Chinese trade data and geopolitical angst.

• Bulls have closed yesterday’s gap lower in futures, with the contract last +60 at 97.70.
• They have extended the rally from key technical support, which was tested yesterday, and will now look for a move towards the Mar 15 low (98.05).
• Still, a bearish technical theme remains intact.
• Cash gilt yields are 4.5-6.0bp lower, with light bull steepening seen.
• The BoE has announced the bookrunners for the syndicated tap of the 4.375% 2054 gilt, due to be conducted in w/c 22 April.
• STIR markets extend their early dovish moves alongside the rally in gilts.
• SONIA futures are flat to +7.5.
• BoE-dated OIS shows ~53bp of cuts for ’24 vs. ~47.5bp late yesterday.
• The monthly run of UK economic activity data has had little impact on markets.
• Today will see focus on the Bernanke review of BoE forecasting (12:00 London), we will provide further colour on that matter ahead of the release.