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

GILTS
HomepageBond Market NewsBulletMarketsFixed Income Bullets

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.
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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.