Futures Back To Flat, Curve Twist Steepens, Mixed Cross-Market Performance

The front end of the UK curve continues to hold richer on the day, with softer BoE-dated OIS/richer SONIA futures (more on that in earlier comments) helping underpin 2s, while the move away from session cheaps in wider core global FI markets has also fed through into UK paper. That leaves Gilt futures a couple of ticks above flat, while cash Gilts run 6bp richer to 1bp cheaper, twist steepening, pivoting around 7s. UK 2s and 5s outperform global counterparts, while only Italian 10s and 30s fare worse cross-market further out the curve. The broader SONIA futures strip has twist steepened, with the reds and front of the greens providing the firmest zone, while only the golds trade cheaper. Focus is squarely on the impending ECB decision.