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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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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