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Futures Unwind Knee-Jerk Move Lower On DMO Remit, Curve A Touch Steeper

GILTS

The DMO’s gilt remit & long end issuance targets printed in the upper end of the expected ranges, applying some knee-jerk pressure to gilts before the space traded back towards pre-remit levels.

  • Futures managed a fresh session low before bouncing ~25 ticks to reclaim 98.90 as the size of the remit/long end issuance was ultimately within the wider range of expectations.
  • The curve holds a little steeper vs. pre-remit levels given the issuance skew, with yields running 1-3bp higher on the day.
  • 4.00% went untested in 10s during the earlier recovery.
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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