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Gilts give up most of their gains, curve pivots around 7-year

GILTS

After opening higher this morning following the BOE decision, gilt futures are almost back to have now moved back to flat on the day.

  • In cash terms, the curve has pivoted around the 7-year point. Shorter-dated gilts having moved lower (and indeed short sterling options markets have seen a number of upside trades going through). However, longer dated gilts have moved a little higher.
  • This has led to the 2s10s curve flattening by 1.7bp at writing, but 10s30s is little changed on the day.

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