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GILTS: Firmer Following U.S. Labour Market Data

GILTS

Gilts follow Tsys higher in the wake of the softer-than-expected U.S. labour market data.

  • Futures register highest levels of the week (97.44) but don’t close Monday’s opening gap lower, before easing to 97.35.
  • Initial resistance seen at the 20-day EMA (97.72). A break there would weaken the recent bearish impulse.
  • Benchmark yields are little changed to 6bp lower on the day, with the curve flattening.
  • Local focus remains on tomorrow’s election.
  • We have provided some scenario analysis for various degrees of Labour majority, flagging downside risks to both gilts & FX:
  • Scenario Analysis Bullet 1.
  • Scenario Analysis Bullet 2.
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Gilts follow Tsys higher in the wake of the softer-than-expected U.S. labour market data.

  • Futures register highest levels of the week (97.44) but don’t close Monday’s opening gap lower, before easing to 97.35.
  • Initial resistance seen at the 20-day EMA (97.72). A break there would weaken the recent bearish impulse.
  • Benchmark yields are little changed to 6bp lower on the day, with the curve flattening.
  • Local focus remains on tomorrow’s election.
  • We have provided some scenario analysis for various degrees of Labour majority, flagging downside risks to both gilts & FX:
  • Scenario Analysis Bullet 1.
  • Scenario Analysis Bullet 2.