Futures Fade Early Move Higher

Gilt futures initially show higher at the re-open, before the move fades.

• That leaves the contract at unchanged levels.
• The major cash benchmarks are flat to 2bp richer, with some modest outperformance in the front end of the curve.
• SONIA futures are unchanged to +1.5 through the blues.
• BoE-dated OIS pricing eases by 1-2.5bp through the liquid contracts, showing ~31.5bp of tightening for next month’s meeting, while terminal policy rate pricing shows around 6.08-6.09%.
• We haven’t seen much in the way of major domestic matters of interest since yesterday’s close, outside of softer than expected public sector net borrowing prints for July.
• Looking ahead, lower tier domestic data and Nov-33 I/L supply are due later today.