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Gilt and GBP

CROSS ASSET
  • The Pound remains on the front foot, as Gilts collapsed on the open. The Pound is in the green against all G10, besides the AUD, following the higher than expected overnight hike from Australia, but moves for the latter have been limited.
  • As noted on Friday, a quarter of the Bloomberg economists rate calls, were going for a 40bps hike.
  • Resistance for Cable is seen further out, to 1.2614 High Apr 29.
  • Gilt support is at 117.22, the 22nd April low, and the yield printed a 2.033% high on that day, highest Yield since November 2015.
  • Today, reference 117.48, 2.033%, would equate to 117.24.
  • Further out, 2.10% = 116.59

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