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Gilt is through another resistance

GILTS
  • Gilt and SONIA remain highly elevated, still no real new catalyst that has been seen by the street for the moves in UK Govies and Rate markets, especially in the red/green part of the SONIA strip.
  • Volumes have also picked up in semi core, as they trade tighter against the German core.
  • Likely some position adjustments from European desk as we head in into the later part of the session, with the US CPI in mind for tomorrow.

Next upside target for Gilt are at:

  • 3.350% = 104.05.
  • 3.329% = 104.25 (50% retrace of the Nov/Dec rally).

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