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AUSSIE 3-YEAR TECHS

(Z1) Neutral at Higher Levels

AUSSIE BONDS

Flatter

RATINGS

Italy Upgraded At Fitch, Affirmations Elsewhere

ASIA

Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Heading North

FOLLOWING TSYS

GILT SUMMARY

Gilts have sold off this afternoon, in line with peer sovereign bonds in the wake of comments from Fed Chair Powell who indicated a willingness to tolerate higher inflation as a result of adopting an average inflation target.

  • Having a hit a session high of 136.55, the Sep-20 gilt future subsequently traded down to 135.96 and is now 8 ticks off the day's low.
  • Cash yields are now back above yesterday's closing levels, with the longer end of the curve underperforming. Last yields: 2-year -0.0197%, 5-year 0.0119%, 10-year 0.3084%, 30-year 0.8942%.
  • Short sterling futures have edged higher by 0.5-1.5 ticks across whites/reds/greens.
  • Looking ahead, BoE Governor Andrew Bailey is scheduled to speak at Jackson Hole tomorrow at ~1400BST.
MNI London Bureau | +44 0203-865-3808 | bruce.jeffery@marketnews.com
MNI London Bureau | +44 0203-865-3808 | bruce.jeffery@marketnews.com