Free Trial

Following Core Peers Cheaper At Open

GILTS

Gilts follow core global FI markets cheaper, with futures looking through Thursday’s low after gapping lower. The contract last shows -25, a little off early lows. Initial technical support is seen at the Oct 11 low (93.95).

  • Cash gilts are 3-4bp cheaper, steepening a touch.
  • SONIA futures are flat to -2.5 through the blues, while BoE-dated OIS contracts are essentially unchanged.
  • Weekend comments saw BoE Governor Bailey note that the last mile in the fight against inflation will be the toughest, while stressing that the weak GDP growth outlook complicates BoE policy. He also noted that he is “puzzled” by the UK’s stubborn rate of pay growth.
  • Meanwhile, outgoing BoE Deputy Governor Cunliffe supported the higher for longer narrative re: interest rates.
  • Other news flow saw focus on well-documented headwinds surrounding the domestic housing market, while one survey revealed the potential for lower than usual seasonal Christmas purchases owing to inflation.
  • BoE speak from Pill headlines the domestic docket today, with tier 1 domestic data due later in the week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.