Free Trial

Futures Through Resistance, Bulls Now Eye March Lows In Yields

GILTS

Gilts rally alongside EGBs in the wake of the softer-than-expected flash European PMIs, with recent highs in futures breached before a pull back from best levels. Contract last 99.06.

  • That opens resistance at projections drawn off the May 29-June 4-June 10 price swing (99.25/62), with bulls asserting further technical control.
  • Cash gilt yields break prior June lows curve-wide and now target levels last seen in March, last 2-4bp lower on the day.
  • BoE-dated OIS moves to effectively fully price 50bp of cuts through year end, although the first 25bp cut is not quite fully priced through the end of the Sep MPC.
  • SONIA futures move above yesterday’s highs but are off best levels, last +0.5 to +4.0 through the blues.
  • UK PMIs are up next (09:30 London).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.