Futures Through Yesterday’s Low & Initial Support, Parallel Shift Across Curve

Moves in Bunds bias gilts lower early on Wednesday.

• Futures move through yesterday’s low as a result, last -45, while the major cash benchmarks are roughly 2bp cheaper across the curve.
• Futures are through initial Fibonacci support (93.63, the 50.0% retracement of the Aug 17 - Sep 1 rally), with bears now looking to 93.12, the 61.8% retracement of the same move.
• Local headline flow has pointed to a lack of headroom for Chancellor Hunt when it comes to his Autumn economic statement.
• SONIA futures run flat to 6bp cheaper through the blues, with the greens leading the weakness.
• BoE-dated OIS runs little changed to 2bp firmer.
• A raft of BoE speakers will appear in front of parliament this afternoon (Treasury Select Committee Hearing for the July Financial Stability Report and the August Monetary Policy Report).