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Gilts Back From Best Levels, As Resistance Holds

GILTS

The move lower in Bunds sees gilt futures off best levels after an initial look above yesterday’s high at the open.

  • Bulls ran out of steam just ahead of 95.79, the Sep 1 high and key resistance level.
  • That leaves the contract +5, while cash benchmarks are flat to -/+0.5bp.
  • SONIA futures sit -1bp to +1bp through the blues.
  • BoE-dated OIS is little changed, with ~19.5bp of tightening showing for this month’s meeting, while terminal policy rate pricing is just shy of 5.65%.
  • Gloom surrounding the housing market dominated local news flow overnight, with the RICS house price balance metric moving to the lowest level seen since ’09.
  • Today’s scheduled focal point comes in the form of the latest ECB monetary policy decision, with any cross-market spill over eyed.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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