October 18, 2024 11:40 GMT
GILTS: Off Recover Highs After Futures Closed Gap Lower
GILTS
Gilt bulls managed to close the opening gap lower, aided by spill over from dovish ECB repricing and a downtick in oil, although the rally has halted as those cross-market moves fade from session extremes.
- Futures +5 at 97.54 vs. highs of 97.64.
- Bearish theme intact, contract not threatening initial technical parameters at 96.97 & 98.11.
- Yields little changed to 1.5bp higher across the curve, steepening.
- Little to note domestically since this morning’s firmer-than-expected retail sales data.
- Speculation surrounding inheritance tax changes, as Labour looks to balance the fiscal books, had has little tangible impact on markets, although may have provided some background support for gilts.
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