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Futures Look A Little Further Below 95.00, Before Equity Weakness Lends Support

GILTS

Downticks in global equity benchmarks probably help limit the latest foray below 95.00 in gilt futures from developing further.

  • Initial support at 94.95 has been breached, leaving bears looking to 94.70, the 20-day EMA, which represents initial firm support.
  • Cash gilts run 3.5-5.5bp cheaper.
  • SONIA futures are flat to 8.0bp cheaper through the reds, steepening.
  • BoE-dated OIS has twist steepened, with ~21.5bp of tightening showing for this week, while terminal policy rate pricing hovers around 5.65%.
  • Local headline flow remains limited at best, with momentum from Friday and another fresh ’23 high for crude oil futures (before a pullback) eyed during the early rounds of trade.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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