GILTS: Light Pressure Following Hawkish Central Bank Comments

The hawkish Waller-Haskel combination flagged elsewhere initially pressured gilt futures below 99.50, before a recovery to ~99.65.

• Still, the contract sticks to the range seen in recent sessions, after bulls failed to test initial resistance (100.05) yesterday.
• Initial support is located at the 20-day EMA (99.04).
• Bears need to force a break of key support at the Mar 15 low (98.05) to turn the short-term technical picture more in their favour.
• Gilt yields are 1.5-3.0bp higher, as the curve sees some light bear flattening.
• SONIA futures and BOE-dated OIS are roughly in line with pre-gilt open levels, a little off hawkish session extremes.
• Headline final Q4 UK GDP data was in line with expectations/initial readings.
• The local calendar is now limited ahead of the long Easter weekend.