Firmer Still

The post-BoE bid extends further on the latest round of U.S. data, accompanied by equity and oil market weakness, as futures show as high as 100.40.

• Bullish focus now moves to the 1.50 projection of the May 29-Jun 4-10 price swing (100.58).
• The front end continues to lead the move, with yields 8-14bp lower on the day.
• Gilt outperformance vs. core global peers persists, leaving the 2-Year gilt/Bund spread less than 1bp off the ’24 closing low (1.1933%), based on BBG generics.
• The combination of today’s U.S. data and the net impact of the BoE decision/press conference has driven the tightening move, even though the BoE cut was initially deemed “hawkish.”
• Focus now moves to comments from BoE chief economist/hawkish dissenter Pill, who will conduct a Q&A session at 17:00 London.