MNI China Daily Summary: Friday, October 11

MNI: GERMANY SEP FINAL HICP -0.1% M/M; +1.8% Y/Y

MNI: PBOC Net Drains CNY183.8 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.0731 Fri; +3.03% Y/Y

CHINA PBOC CONDUCTS CNY94.2 BLN VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0731 FRI VS 7.0742

EZ/UK Bond Supply Calendar: BoE APF on Monday

MNI: GERMAN SEP CPI +1.6 % Y/Y

MNI: UK AUG TRADE BALANCE GBP -0.95BN

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

GILTS: Early Rally Reverses

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

The early gilt rally has faded with wider core global FI markets pulling back from session highs.

  • Futures now flat at 96.12 vs. early highs of 96.52, after failing to close yesterday’s opening gap lower.
  • Bearish trend intact, bulls have to overcome the October 7 high (96.93) to start turning the technical tide. Initial support at yesterday’s low (95.83).
  • Yields 1-2bp higher, curve a touch steeper.
  • Light outperformance vs. Bunds after yesterday’s fresh cycle closing wides above 195bp.
  • No impact from in line with expected GDP data.
  • BoE-dated OIS prices 22bp of cuts for November, 35bp through year-end and 95bp through June. Little changed to 3bp more hawkish.
  • SONIA futures flat to 1.0 higher on the day, fading alongside gilts.
  • Fiscal speculation should continue to dominate ahead of the October 30 Budget, with markets particularly sensitive to headwinds for gilt demand (as seen following yesterday’s caveated warning from Citi).
  • Further afield, U.S. PPI data headlines the macro calendar today.
150 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.

The early gilt rally has faded with wider core global FI markets pulling back from session highs.

  • Futures now flat at 96.12 vs. early highs of 96.52, after failing to close yesterday’s opening gap lower.
  • Bearish trend intact, bulls have to overcome the October 7 high (96.93) to start turning the technical tide. Initial support at yesterday’s low (95.83).
  • Yields 1-2bp higher, curve a touch steeper.
  • Light outperformance vs. Bunds after yesterday’s fresh cycle closing wides above 195bp.
  • No impact from in line with expected GDP data.
  • BoE-dated OIS prices 22bp of cuts for November, 35bp through year-end and 95bp through June. Little changed to 3bp more hawkish.
  • SONIA futures flat to 1.0 higher on the day, fading alongside gilts.
  • Fiscal speculation should continue to dominate ahead of the October 30 Budget, with markets particularly sensitive to headwinds for gilt demand (as seen following yesterday’s caveated warning from Citi).
  • Further afield, U.S. PPI data headlines the macro calendar today.