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Futures Print Fresh Session Lows, Offshore Cues Eyed

GILTS

Gilts remain happy to take their cues from elsewhere given the lack of market-moving domestic news flow. Futures registered fresh session cheaps in recent trade as a result, after brief respite for bulls failed to close the opening gap lower. The contract is sticking within yesterday’s range thus far, last -25 or so. Cash Gilts are 3-7bp cheaper across the curve, bear flattening, with the 2-/10-Year curve operating ~10bp off inverted cycle extremes after yesterday’s steepening move. BoE-dated OIS continues to point to a terminal policy rate of just under 6.25%. Lower tier local data did little for markets.

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

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