Futures Back To Flat, Curve A Touch Flatter

Gilts follow the broader ebb and flow after the early cheapening move (slightly softer than expected, although generally in line with BoE forecast, UK GDP data may have filtered in with a bit of a delay and limited early losses), leaving futures around unchanged levels after a foray into positive territory stopped comfortably short of yesterday’s high. Cash Gilts run 1-3bp cheaper across the curve, with a steepening bias observed. BoE dated OIS continues to indicate a terminal policy rate of just over 4.90%, as participants await comments from BoE’s Pill around lunch time (12:15 London).