Futures Through Yesterday’s Low

Gilt futures move through yesterday’s low alongside a broader downtick in core global FI markets, with 10-Year U.S. Tsy yields now topping 4.00% and focus on the impending rounds of U.S. & European event risk.

• The contract printed a little below 100.50 before recovering to ~100.55, ~45 ticks softer on the day and ~10 ticks off the base of the early ~40-tick range.
• Bears continue to eye key support at the Dec 13/gap high (100.20).
• Cash gilt yields run 2-3bp higher across the curve.
• SONIA futures run +0.5 to -8.0 through blues, with a little more pressure seen after the gilt open.
• BoE-dated OIS is incrementally more hawkish vs. pre-gilt open levels.
• Halifax house price data pointed to a resolute end to ’23 for the property market, although there has been some divergence in the broader raft of measures covering the space in recent months.
• Elsewhere, political-based speculation continues to do the rounds after yesterday’s comments from PM Sunak re: the timing of the election.
• Only lower tier local data is due today.