June 12, 2024 13:40 GMT
Futures Near Next Resistance Following U.S. CPI, Curve Bull Steepens
GILTS
Gilts surge in the wake of the softer-than-expected U.S. CPI release.
- Futures top out at 97.84 for now, just ahead of the next meaningful technical resistance level, at the June 4 high (97.86).
- This protects the 76.4% Fibonacci retracement of the May 16-29 bear cycle (98.04). A break above that level would strengthen the current bullish phase, which is still deemed corrective at this juncture.
- Yields are 9-11bp lower, with the broader curve moving to a state of bull steepening after some modest bull flattening earlier in the day.
- Wider macro matters continue to dominate, with today’s monthly UK GDP data and political soundbites failing to impact markets.
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