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Futures Little Change After Friday’s Low Held Late On Monday

GILTS
HomepageBond Market NewsBulletMarketsFixed Income Bullets

Gilt futures trade either side of late Monday levels, last printing essentially unchanged at 98.34.

  • Friday’s low in the contract (98.21) held late on Monday.
  • Zooming out, last week’s rally in gilt futures instilled a bullish theme, resulting in a print above the May 16 high (98.89). A clear break of this hurdle would reinforce bullish conditions. Conversely, initial firm support is seen at the 20-day EMA (97.45).
  • Cash gilt yields are little changed to 1bp lower on the day.
  • Overnight local headline flow won’t have been market moving, with political headwinds for PM Sunak and the Conservative Party still dominating.
  • Labour’s tax policies continue to get plenty of airtime, with Shadow Chancellor Reeves providing background details on some of the more niche aspects of her party’s fiscal policy preferences.
  • Kantar’s food price inflation metric moderated for a sixteenth consecutive month, printing +2.1% Y/Y, a welcome sign for policymakers.
  • GBP4bn of 4.125% Jul-29 gilt supply is due today.
  • Brightmine wage data will hit in the early hours of Wednesday morning.
  • Further out, tomorrow’s CPI data and Thursday’s BoE decision headline this week’s UK schedule.
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Gilt futures trade either side of late Monday levels, last printing essentially unchanged at 98.34.

  • Friday’s low in the contract (98.21) held late on Monday.
  • Zooming out, last week’s rally in gilt futures instilled a bullish theme, resulting in a print above the May 16 high (98.89). A clear break of this hurdle would reinforce bullish conditions. Conversely, initial firm support is seen at the 20-day EMA (97.45).
  • Cash gilt yields are little changed to 1bp lower on the day.
  • Overnight local headline flow won’t have been market moving, with political headwinds for PM Sunak and the Conservative Party still dominating.
  • Labour’s tax policies continue to get plenty of airtime, with Shadow Chancellor Reeves providing background details on some of the more niche aspects of her party’s fiscal policy preferences.
  • Kantar’s food price inflation metric moderated for a sixteenth consecutive month, printing +2.1% Y/Y, a welcome sign for policymakers.
  • GBP4bn of 4.125% Jul-29 gilt supply is due today.
  • Brightmine wage data will hit in the early hours of Wednesday morning.
  • Further out, tomorrow’s CPI data and Thursday’s BoE decision headline this week’s UK schedule.