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GILTS: Bear Steepening Holds, As Gilts Meander Through Tuesday

GILTS
CEEMEABulletUKMarketsFixed Income Bullets

Gilts continue to stick to relatively contained ranges, taking cues from elsewhere.

  • Bulls unable to challenge yesterday’s highs, while bears can’t generate sustainable downside momentum, at least intraday.
  • Futures last -23 at 94.93 vs. lows of 94.74.
  • Initial support & resistance at yesterday’s range boundaries (94.58/95.35), corrective bullish cycle remains in play within bearish trend.
  • Yields flat to 3bp higher on the day, curve steeper.
  • 2s10s within multi-week range, last +3bp.
  • 5s30s ~2bp off multi-week highs, last 61.6bp.
  • 10-Year spread to Bunds still threatening fresh cycle closing highs, albeit just back below that level at present (215.5bp vs. 215.8bp closing cycle highs).
  • Break above would expose the mini-Budget ’22 closing high of 227.5bp.
  • 10s ~1bp tighter vs. 10-Year Tsys, although moves in U.S. paper continue to provide impetus.
  • Upcoming comments from BoE chief economist Pill (15::00 London) eyed, given his previous hawkish dissent. More on that to come in a subsequent STIR bullet.
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Gilts continue to stick to relatively contained ranges, taking cues from elsewhere.

  • Bulls unable to challenge yesterday’s highs, while bears can’t generate sustainable downside momentum, at least intraday.
  • Futures last -23 at 94.93 vs. lows of 94.74.
  • Initial support & resistance at yesterday’s range boundaries (94.58/95.35), corrective bullish cycle remains in play within bearish trend.
  • Yields flat to 3bp higher on the day, curve steeper.
  • 2s10s within multi-week range, last +3bp.
  • 5s30s ~2bp off multi-week highs, last 61.6bp.
  • 10-Year spread to Bunds still threatening fresh cycle closing highs, albeit just back below that level at present (215.5bp vs. 215.8bp closing cycle highs).
  • Break above would expose the mini-Budget ’22 closing high of 227.5bp.
  • 10s ~1bp tighter vs. 10-Year Tsys, although moves in U.S. paper continue to provide impetus.
  • Upcoming comments from BoE chief economist Pill (15::00 London) eyed, given his previous hawkish dissent. More on that to come in a subsequent STIR bullet.