May 02, 2024 07:25 GMT
Firmer On Fed
GILTS
Gilts rally as GBP FI markets adjust to the FOMC decision, but futures stick within the range seen week-to date, last +42 at 96.07 (highs of 96.18).
- The contract stabilised ahead of initial support at 95.36 yesterday, although the bearish technical picture remains intact, with meaningful esistance levels some way off.
- 5s lead the rally, with yields 2-5bp lower on the day.
- Firmer-than-expected Spanish PMI data helps cap the rally.
- SONIA futures remain underpinned, last unchanged to +8.0.
- BoE-dated OIS operates around pre-gilt open levels, flagged in the early STIR bullet.
- The UK calendar is essentially empty today, which will leave focus on broader macro headline flow and post-FOMC reaction in EUR & GBP markets.
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