Gilts & Bunds Draw Light Support From Tsys

Core EGBs and Gilts seemingly lean on a tick away from session cheaps in Tsys for some support.

• Gilt bears have been unable to force a meaningful test of yesterday’s lows in futures as of yet, with BoE terminal rate pricing on the OIS strip moderating a touch to last sit around the 5.50% mark. Still, Gilt underperformance on the back of CPI-related adjustments continue to resonate this morning, with the broader Gilt curve still under bear flattening pressure.
• The major German FI cash benchmarks run flat to 1bp richer, flattening. The space is operating in a contained manner thus far, looking through the ECB speak delivered today. The fresh bid comes after the space backed away from early technical recession- and equity weakness-related richest levels as a bid in the NASDAQ 100 helped steady wider sentiment.