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Futures Look Through Initial Resistance

GILTS

Gilt futures show through initial technical resistance in the form of the Nov 9 high (96.14). The contract prints as high as 96.20 before backing off to 96.10 last. A move through best levels of the day would allow bulls to target the next resistance area, which comes in the form of the September 22 high (96.37). Beyond there they would focus on the September 20 high and key resistance level (96.71),

  • Cash gilt yields show 8-10bp lower across the curve with the belly to intermediate zone leading the richening.
  • SONIA futures are now flat to 13bp richer on the day, with the strip flattening.
  • BoE-dated OIS is little changed to 10bp softer.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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