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GILTS: Bund Rally Provides Support After Weakness At Open

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

Initial weakness in gilts fades as Bunds rally further & French PMIs are softer than expected. 

  • Futures breached initial support at their Friday low (99.45) shortly after the open, printing 99.42 before recovering to ~99.80 last.
  • The bullish technical picture remains intact in the contract.
  • Bulls need to break the Sep 17 high (101.54) to reignite the uptrend.
  • Yields 0.5-3.5bp lower, curve steepens. 10s widen by 3bp vs. German peers.
  • GBP STIRs see a dovish move as the long end rallies.
  • ~41bp of BoE cuts priced through year-end, ~129bp priced through June ’25.
  • Fitch affirmed the UK at AA-; Outlook Stable late Friday. Won’t be a market mover.
  • Flash PMI data is due today, while comments from Chancellor Reeves will also be eyed (we will provide more colour on the latter shortly).
  • No APF sales scheduled from the BoE today.
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Initial weakness in gilts fades as Bunds rally further & French PMIs are softer than expected. 

  • Futures breached initial support at their Friday low (99.45) shortly after the open, printing 99.42 before recovering to ~99.80 last.
  • The bullish technical picture remains intact in the contract.
  • Bulls need to break the Sep 17 high (101.54) to reignite the uptrend.
  • Yields 0.5-3.5bp lower, curve steepens. 10s widen by 3bp vs. German peers.
  • GBP STIRs see a dovish move as the long end rallies.
  • ~41bp of BoE cuts priced through year-end, ~129bp priced through June ’25.
  • Fitch affirmed the UK at AA-; Outlook Stable late Friday. Won’t be a market mover.
  • Flash PMI data is due today, while comments from Chancellor Reeves will also be eyed (we will provide more colour on the latter shortly).
  • No APF sales scheduled from the BoE today.