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/GILT SUMMARY: UK Yields Dive as UK Inches Toward Work From Home Order

EGBS
  • Gilt futures are challenging the September 3 high (which comes in at 127.69) after the news that the government is due to announce Plan B Covid-19 restrictions later today. Above 127.69 lies the 128.00 level (the August 31 high). Markets are now seeing some steepening of the curve as near-term hikes appear increasingly unlikely, with 2s10s up 0.7bp on the day to 28.3bps.
  • EGBs are exhibiting similar price action, with German 10y yields off just over 2bps, although the curve has flattened as 30y yields dip 3bps.
  • Focus turns to a possible press conference from UK PM Johnson, who is slated to appear from 1730GMT/1230ET after a cabinet meeting due in the next few hours.

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