June 21, 2024 08:13 GMT
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).
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