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Front End Firms, Although Nowhere Near Reversing Yesterday’s Aggressive Cheapening

GILTS

Gilts remain happy to operate in the range established in the first hour or so of Wednesday trade, outside of 2s, which have continued to richen. That leaves the major cash benchmarks flat to 5.5bp richer, as yesterday’s aggressive bear flattening is partially unwound via bull steepening. Local headline flow has been light since the market open, leaving participants to mull over local data and recent hawkish BoE re-pricing, which, although it has edged back from extremes, sees just over 130bp of further hikes priced into the BoE-dated OIS strip.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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