Gilts close Gap Higher, Tsy Spreads Remain Wider On The Day

Gilt futures close the opening gap higher as bonds continue to drift away from best levels.

• Various technical levels in the major core global FI markets were respected earlier today, helping facilitate the move away from best levels.
• Since then, the lower-than-expected U.S. weekly jobless claims prints seems to have outweighed the softer-than-expected headlined durable goods and core capital goods orders data (which was accompanied by firmer than expected durable goods orders excl. transport).
• Tsys remain wider on the day vs. core global FI counterparts, while Gilts still outperform in the main.
• Tsys see 2-4bp of cheapening, bear flattening, while both the German and UK curves twist flatten on the session.