MNI: FED'S BARKIN STILL CONFIDENT UNDERLYING INFLATION FALLING

MNI China Daily Summary: Friday, January 3

MNI China Press Digest Jan 3:RRR Cut Mooted, Yuan, Consumption

MNI BRIEF: Beijing Boosts Consumer Trade-ins To Cellphones

MNI: PBOC Net Drains CNY88.5 Bln via OMO Fri

MNI: PBOC Sets Yuan Parity Lower At 7.1878 Fri; -2.29% Y/Y

US EIA:NAT GAS STORAGE -116 BCF TO 3,413 BCF JAN 03 WK

MNI: US ISM DEC MANUF PURCHASING MANAGERS INDEX 49.3

MNI: UK NOV M4 MONEY SUPPLY +0% M/M, +2.9% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GILTS: Following Peers Lower

GILTS
CEEMEABulletUKMarketsFixed Income Bullets

Gilts follow core global FI peers lower at the open, with spillover from the previously covered technical break in Bunds seemingly playing a part.

  • Little in the way of news flow to trigger this morning’s weakness in core global FI markets.
  • Futures -19 at 95.57 vs. lows of 95.45.
  • Initial support at the Dec 4 low (95.49) pierced. Fresh downside would expose the November 28 low (95.17), although the short-term bullish corrective phase in the contract remains intact.
  • Yields 1.0-2.5bp higher, 10s lead the sell off.
  • Spread to Bunds 1bp wider at ~216bp, sticking to the recent range. 220bp caps, while stickier UK inflation and fiscal/issuance risks in the UK limit pullbacks.
  • SONIA futures a little softer given the weakness in bonds, last flat to -2.5.
  • BoE-dated OIS prices 82bp of cuts through ’25 vs. 84bp at yesterday’s close/early today.
  • Supply-wise, the DMO will sell GBP1.5bln of the Nov-33 I/L line this morning.
  • Little of note on the UK data calendar today, which will leave focus on cross-market spillover and the U.S. CPI release.
165 words

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.

Gilts follow core global FI peers lower at the open, with spillover from the previously covered technical break in Bunds seemingly playing a part.

  • Little in the way of news flow to trigger this morning’s weakness in core global FI markets.
  • Futures -19 at 95.57 vs. lows of 95.45.
  • Initial support at the Dec 4 low (95.49) pierced. Fresh downside would expose the November 28 low (95.17), although the short-term bullish corrective phase in the contract remains intact.
  • Yields 1.0-2.5bp higher, 10s lead the sell off.
  • Spread to Bunds 1bp wider at ~216bp, sticking to the recent range. 220bp caps, while stickier UK inflation and fiscal/issuance risks in the UK limit pullbacks.
  • SONIA futures a little softer given the weakness in bonds, last flat to -2.5.
  • BoE-dated OIS prices 82bp of cuts through ’25 vs. 84bp at yesterday’s close/early today.
  • Supply-wise, the DMO will sell GBP1.5bln of the Nov-33 I/L line this morning.
  • Little of note on the UK data calendar today, which will leave focus on cross-market spillover and the U.S. CPI release.