MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

MNI: China CFETS Yuan Index Down 0.36% In Week of Dec 6

MNI: PBOC Net Injects CNY13.8 Bln via OMO Monday

MNI BRIEF: PBOC Increases Gold Reserves

CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GILTS: Early Rally Holds

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

Gilts rally alongside core global FI markets 

  • Dovish press articles and comments from ex-central bankers covering next week’s Fed decision have increased market-implied odds of a 50bp cut at that meeting, supporting bonds.
  • Futures stick within yesterday’s range, last +21 at 101.16.
  • Technicals in the contract remain bullish. Initial resistance at yesterday’s high (101.51), with support at the Sep 10 high (100.64).
  • Yields ~2bp lower across the curve.
  • SONIA futures flat to +4.0, just off session highs.
  • BoE-dated OIS shows ~48.5bp of cuts through year-end and ~135bp of cuts through mid-’24.
  • Outcomes within the BoE/Ipsos inflation attitudes were mixed (0.1ppt lower 1 year out, 0.1ppt higher for longer-run), with little feedthrough into markets, as to be expected.
  • Wider cross-market moves and broader headline flow will dictate ahead of the weekend, with the UK calendar essentially empty.
129 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Gilts rally alongside core global FI markets 

  • Dovish press articles and comments from ex-central bankers covering next week’s Fed decision have increased market-implied odds of a 50bp cut at that meeting, supporting bonds.
  • Futures stick within yesterday’s range, last +21 at 101.16.
  • Technicals in the contract remain bullish. Initial resistance at yesterday’s high (101.51), with support at the Sep 10 high (100.64).
  • Yields ~2bp lower across the curve.
  • SONIA futures flat to +4.0, just off session highs.
  • BoE-dated OIS shows ~48.5bp of cuts through year-end and ~135bp of cuts through mid-’24.
  • Outcomes within the BoE/Ipsos inflation attitudes were mixed (0.1ppt lower 1 year out, 0.1ppt higher for longer-run), with little feedthrough into markets, as to be expected.
  • Wider cross-market moves and broader headline flow will dictate ahead of the weekend, with the UK calendar essentially empty.