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Gilt Weakness & Equities Moving Off Lows Cap Any Richening

US TSYS

Weakness in Gilts surrounding the hawkish BoE repricing touched on elsewhere and equities moving away from session cheaps keeps any bounce in Tsys contained, with TYM3 last dealing a touch above session lows (after a brief show below Tuesday’s base earlier in the session). Cash Tsys bear flatten, with the major benchmarks running 0.5-2.5bp cheaper. FOMC-dated OIS is generally as it was in our previous update, with ~19bp of cumulative tightening priced for the end of the July gathering, followed by ~43bp of cuts showing by year-end.

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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