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USDCAD TECHS

Heading North

GLOBAL POLITICAL RISK

Modi, AMLO Top Major Economy Leader Poll, Macron Last

AUDUSD TECHS

Under Pressure

EURJPY TECHS

Trend Condition Remains Bearish

GILT SUMMARY
GILT SUMMARY: Gilts are trading higher but well off session highs underpinned by
G7 spat over global trade, disappointing European data and domestic political
risk. Yiel curve is slightly flatter as short-end lags following BoE Ramsden
comments last night.
- 2-yr Gilt yield is -1.2bp at 0.739%, 5-yr -2.3bp at 1.084%, 10-yr -4.6bp at
1.364%, 30-yr -4.4bp at 1.829% & 50-yr -3.9bp at 1.659% according to Tradeweb.
- Elsewhere, newswire take on the Brexit showdown seen yesterday is that it was
a hallow victory for the Brexiteers inside the cabinet and that PM May is
forging a path that is likely to tie UK hands with the EU for a very long time.
- BoE/TNS inflation survey stilled showed the public expecting inflation to
flat-line for a couple of years at a level markedly above the Bank of England's
2% inflation target.
- Short sterling strip is trading steady to higher, curve flatter as green and
blue contracts rise by 3 to 5 ticks while white contracts remain steady.
- Markets now pricing a 63% chance of a 25bp rate hike in August following BoE
Ramsden comments yesterday that growth is set to exceed its speed limit.