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GILTS: Off Lows

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

Gilts off lows alongside Bunds. 

  • Recent headline flow has also been bond-supportive, with equities back from best levels as the Israeli military chief points to an acceleration of attacks on Hezbollah today.
  • Gilt bears pushed futures as low as 98.60 before a rebound to 98.80.
  • Next support seen at September 2 low (98.11).
  • Yields 3.5-5.0bp higher on the day, curve still steeper.
  • 10s widen by ~3.5bp vs. Bunds, dovish ECB repricing driving that widening.
  • 10-Year yields closed the gap lower seen on September 4 but failed to move meaningfully above those levels as gilt bears couldn’t force a move through 4.00%.
  • BoE-dated OIS little changed since our previous update, ~40bp of cuts showing through Dec ’24 & ~124bp of easing priced through June ’25.
  • SONIA futures last flat to -5.0.
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Gilts off lows alongside Bunds. 

  • Recent headline flow has also been bond-supportive, with equities back from best levels as the Israeli military chief points to an acceleration of attacks on Hezbollah today.
  • Gilt bears pushed futures as low as 98.60 before a rebound to 98.80.
  • Next support seen at September 2 low (98.11).
  • Yields 3.5-5.0bp higher on the day, curve still steeper.
  • 10s widen by ~3.5bp vs. Bunds, dovish ECB repricing driving that widening.
  • 10-Year yields closed the gap lower seen on September 4 but failed to move meaningfully above those levels as gilt bears couldn’t force a move through 4.00%.
  • BoE-dated OIS little changed since our previous update, ~40bp of cuts showing through Dec ’24 & ~124bp of easing priced through June ’25.
  • SONIA futures last flat to -5.0.