Futures Firm, Curve Flattens

Gilts Look to the broader direction of travel for core global FI markets since Friday’s close, with the U.S. debt ceiling situation dominating the wider headline feeds. Closer to home, politics continue to garner the bulk of the UK press interest over the weekend, with continued headwinds for PM Sunak from within his own party noted (albeit not market moving).

• The major Gilt benchmarks run little changed to 2bp richer as result, while futures are ~40 ticks above Friday’s closing levels.
• Global cues will likely dominate for Gilts on Monday. April’s inflation data presents the highlight of the week (due Wednesday), with the usual rounds of BoE QT, DMO supply and BoE speak from Governor Bailey & Haskel due throughout the week.