June 12, 2024 07:27 GMT
Futures Probe 97.00
GILTS
Gilts push through yesterday’s highs, with the impact of yesterday’s 10-Year Tsy auction and less worry in EGB spreads noted early today.
- The rally stalls at 97.00, with next meaningful resistance level located at the June 4 high (97.86) after Monday’s opening gap lower was closed.
- Some will look to pre-NFP levels as an intermediate resistance.
- The recent recovery from key support at the May 29 low (95.33) is still deemed corrective at this stage.
- Cash gilt yields are ~2bp lower across the curve.
- The incrementally firmer-than-expected UK monthly GDP reading had little tangible impact.
- We noted that there will be little policy impact from the data, with next week's CPI print much more important for the BoE.
- GBP900mn of 0.625% Mar-45 I/L gilt supply is due today.
- Broader macro focus is set to fall on the U.S. CPI release and FOMC decision.
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