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Futures Briefly Sub-97.00 following APF

GILTS

Gilt bears briefly push futures below 97.00 as the cover ratio on the long-dated BoE APF sale slides (even as the amount on offer also falls vs. Q1 levels).

  • The support cluster at 96.82/83 presents the key target area for bears.
  • Cash gilt yields are 5-9bp higher with 10s leading the sell off.
  • SONIA futures are flat to -11.0 at/just off lows.
  • BoE-dated OIS shows ~50bp of ’24 cuts vs. closer to 55bp late Friday.
  • Global matters dominated ahead of the APF sale (unwind of some geopolitical risk premium and U.S. retail sales data), with local headline flow limited.
  • BoE’s Breeden stuck to payment matters in her address, as was expected.
  • Expect our full preview of this week’s UK labour market and CPI data to be released later today.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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