Free Trial

Futures Look Through Early Lows

GILTS

Gilt futures have drifted lower over the last couple of hours. That has allowed the contract to trade through the early London low, printing as soft as 98.73 in the process, before ticking away from worst levels to trade around 115 ticks lower on the day at 98.80 or so.

  • Cash gilt yields are 10-16 bp higher, with bear flattening still in play.
  • 5+-Year benchmarks register fresh session highs in yield terms.
  • The latest round of 10-Year Jan-34 gilt supply was relatively well-received (albeit with the tail not as tight as has been seen at other early ’24 DMO auctions), which leaves us looking to some weakness in U.S. Tsys as a driver.
  • SONIA futures show flat to -19.0, with the reds under the most pressure.
  • Looking to the BoE-dated OIS strip, ~112bp of cuts are now priced through ’24, with fresh payside flows a potential facilitator of the gilt weakness touched on above.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.