Fresh Session Lows For Gilt Futures, Monday’s Low Probed

The weakness in gilt futures runs out of steam around Monday’s low, with only a modest look through that mark seen thus far. More meaningful technical support is located at the November 15 low (95.93), ~75 ticks below prevailing levels.

• The contract last shows -65 or so, 3 ticks off lows, while cash gilt yields are 5-9bp higher on the day, with the previously covered gilt issuance remit update and adjusted gilt issuance timetable making its presence felt on the curve.
• Futures roll activity has seen some turnover today, albeit remaining limited. ~75K lots have changed hands thus far, with ~50K lots trading on the bid and ~25K trading on the offer (range -19 to -8).
• SONIA sees some hawkish pressure in sync with gilt weakness, with futures 0.5 to 9bp softer through the blues, while BoE-dated OIS is flat to 6bp firmer on the day through ’24 meetings.