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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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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.