Futures Probe Yesterday's High After Hedging Of Syndication Passes

Gilts have rallied, with hedging related pressure around today’s syndication out of the way (session lows in the futures came around the timing of the pricing of the syndication).

• The broader bid for core global FI markets has also helped, with semi-core & peripheral EGBs pressured by French political uncertainty.
• This helps underpin the early rally that came on the back of the slightly softer-than-expected labour market data.
• Yesterday’s high (96.70) continues to provide initial resistance, with that level probed at typing.
• A meaningful break higher would switch focus to the June 4 high (97.86)
• Cash gilt yields are 3-6bp lower, sticking to ranges seen in recent weeks.
• 2s10s has registered fresh ’24 steeps.
• The Conservative Party election manifesto was in line with pre-announcements and press leaks, which, when coupled with the huge deficit the Conservatives face in the opinion polls, failed to provide any tangible market impact.
• Monthly UK economic activity and GDP data crosses early Wednesday.