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Firmer, But Off Best Levels

GILTS

Gilts yields last run 7.5-11.0bp lower on the day. With the late Nov double top (97.93) untested after bulls ran out of steam just ahead of 97.70, before the contract pulled back to 97.50.

  • Narrower breakevens (aided by a slower but still elevated Kantar food price metric and lower oil prices) help with the rally, as does the cross-market feedthrough from ECB’s Schnabel’s early dovish commentary.
  • SONIA futures are flat to 9.5bp firmer on the day.
  • BoE-dated OIS now shows ~80bp of total cuts for ’24, with 24bp of cuts showing come the end of the June MPC. Contracts through ’24 MPC meetings are little changed to ~11bp softer on the day.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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