Free Trial

Gilts look set to close modestly.......>

GILT SUMMARY
GILT SUMMARY: Gilts look set to close modestly higher after reversing earlier
risk-on sentiment as US President Trump announces cancellation of US/NK summit
and Bund/BTP spread widens on fresh political concerns. 10-yr point on the yield
curve is outperforming the rest of the curve.
- 2-yr Gilt yield -2.2bp at 0.748%, 5-yr -2.5bp at 1.099%, 10-yr -3.7bps at
1.394%, 30-yr -2.7bps at 1.833% & 50-yr -2.1bps at 1.639% according to Tradeweb
- Renewed concerns that Italian finance minister might be Savona and then
Trump's announcement that he has cancelled his meeting with N.Korea leader Kim
Jung-Un, blaming recent statements from the dictator, supported a recovery in
Gilts. Earlier Gilts were seen weighed by risk-on sentiment and better than
expected UK retail sales
- Short sterling strip has reversed earlier bear steepening move and has now
shifted lower by a couple of ticks as markets continue to price out possibility
of a rate hike in August, now down to just 36%.
- Breakevens are 2/3bp tighter curve flatter, while majority of swap spreads are
circa 1bp wider.

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.