Friday's Range Still Intact In Futures, BoE APF Sale Sees Very Weak Demand

Futures hit fresh session lows around the time that the soft demand metrics for the latest long-dated gilt sales from the BoE’s APF crossed but have stabilised since.

• The unwind of some of last week’s French political risk premium and IG$ supply applied pressure to wider core global bonds over the past few hours.
• Bears still haven’t quite tested Friday’s early low in futures (98.21), last showing -52 at 98.35 (low of 98.28).
• Cash gilt yields are 4-5bp higher with a modest steepening bias.
• Outright yields tick away from last week’s lows, leaving April/May lows intact, dependent on the benchmark you are looking at.
• That leaves 2s10s a little below recent highs.
• Gilts widen vs. most EGB peers across the curve, although spreads vs. German 10s and 30s are a touch tighter on the day.