Futures Show Above Yesterday's High As NYCB Worry Returns

Gilt futures look through yesterday’s high (98.18).

• Worry surrounding troubled U.S. bank NYCB dominates as pre-market U.S. equity indications are seen and broader equity markets come under pressure.
• This more than counters any impact from UK/European data.
• Futures last +5 at 98.14 (range of 97.42-98.21).
• A fresh move higher would expose the Feb 27/26 highs (98.26/98.53), with the latter representing key short-term resistance.
• Cash gilt yields are 1-2bp higher, light bull steepening seen.
• SONIA futures are flat to +2.0 through the blues.
• BoE-dated OIS shows 66bp of cuts through ’24 after testing 60bp earlier.
• Comments from BoE’s Pill are due this afternoon, although he has spoken on several occasions in recent times.
• Fiscal speculation remains evident ahead of next week’s Budget (expect our full preview early next week).
• Discussions surrounding incoming BoE Deputy Governor Lombardelli also remain evident.