Fresh Cheapening On Global Impulses

Pretty much one-way traffic lower for Gilt futures over the last couple of hours, with the closing of the opening gap lower failing to generate anything in the way of meaningful bullish momentum around midday, before the previously outlined U.S. data applied pressure to the space. That allowed futures to make new session lows, with the contract last -55, at worst levels of the day (but still operating within Wednesday’s range boundaries), while cash Gilts run 3-9bp cheaper as the curve bear flattens, although the 2-/10-Year curve still resides ~10bp of inverted cycle extremes. BoE-dated OIS remains a little sticky, with ~45bp of tightening still showing for August, while terminal policy rate pricing ticks back above 6.25%.