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Flattening, BoJ impetus Observed

GILTS

Gilt futures firm back towards yesterday’s bests at the open, aided by dovish feedthrough from the latest BoJ decision. Elsewhere, crude oil is a little softer vs. levels seen at yesterday’s gilt close, which will also be aiding the bid.

  • The contract last shows +50 or so, around 101.80, ~10 ticks shy of best levels, after bulls failed to break yesterday’s high (101.88).
  • Cash gilt yields are 3-5bp lower, with the curve flattening.
  • PIMCO used an article in the FT to reiterate worry re: a ‘hard landing’ for the UK economy.
  • Lower tier local data and comments from BoE's Breeden are due today.
  • Also note that the DMO will come to market with its final round of gilt supply for ’23, via GBP3bn of 4.625% Jan-34 paper.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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