Futures Either Side Of Late Thursday Levels Early On

Gilt futures show either side of levels seen late Thursday as participants digest the moves in core global FI markets since yesterday’s close.

• That leaves the contract -25 at 103.13, just below the middle of its early 30-tick range.
• Technically, the uptrend in gilt futures remains intact. The contract traded to a fresh trend high Wednesday, reinforcing bullish conditions. The focus is on 104.00 next. Initial firm support lies at 100.20, the Dec 13 high. Short-term weakness would be considered corrective.
• Cash gilt yields are 1.5bp lower to 1bp higher across the curve, twist steepening.
• SONIA futures are +1.0 to -2.0 through the blues, operating on very light volume.
• BoE-dated OIS still sits around levels flagged in our pre-gilt open commentary.
• Domestic news flow saw the latest KPMG survey point to consumer worries surrounding financial security, which could impact spending habits in ’24.
• On that front, the latest data from Barclaycard pointed to fairly tepid UK card spending growth when the impact of inflation is netted off.
• Still, the latest BBG survey, released yesterday, points to expectations for the UK economy to avoid a ‘hard landing.’
• Nationwide house price data was a little softer-than-expected.
• A reminder that gilt futures and options close at 12:15 (London) today.