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Futures Now A Little Lower On The Day, Curve Twist Steepens

GILTS

The early Gilt bid has faded leaving futures -15 and cash benchmarks 3bp richer to 2bp cheaper as the curve twist steepens (this comes as steepener flow has been noted in U.S. Tsy futures). Local headline flow remains light. Terminal policy rate pricing on the BoE-dated OIS strip ticks back to ~6.55% after basing ahead of 6.50%, with liquid contracts on that strip last running 1-5bp softer on the day. The SONIA strip has twist steepened.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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