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Futures Shy Of Best Levels, While Curve Holds Flatter

GILTS

Gilt futures operate shy of best levels of the day, with upticks in equity benchmarks taking the edge off this morning’s rally.

  • The 20-DMA in the contract was breached but has recently given way after bulls failed to get anywhere near challenging the September 26 high (95.67).
  • The contract last shows +110 ticks, moving back below 95.00.
  • Cash gilts run 2.5bp cheaper to 12bp richer, twist flattening.
  • A quick reminder that the long end of the curve derived additional support from a well-received round of 10-year supply, allowing it to build on the impetus stemming from an escalation in Israel-Lebanon tensions.
  • SONIA futures are 1bp softer to 10bp richer through the blues, twist flattening.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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