Gilts outperform, continue to price in more dovish BOE

Gilts are outperforming as they continue to re-price following yesterday's dovish MPC meeting, while the rest of core fixed income is drifting higher this morning, with little in the way of headline drivers.

• The biggest moves this morning have been at the front-end of the UK curve with SONIA futures up to 12.5 ticks higher on the day at writing. 2-year gilt yields down 7.0bp with the curve bull steepening.
• Treasuries have outperformed Bunds a little. The UST curve is bull flattening while the German curve is seeing more of a parallel shift.
• Looking ahead, we have the first Fed-talk since the FOMC presser with Waller, Kashkari, Barkin and Bowman all due to speak today but the data calendar is light with Eurozone trade data and US existing home sales the highlights.
• TY1 futures are up 0-8 today at 124-18+ with 10y UST yields down -2.1bp at 2.152% and 2y yields up 0.4bp at 1.921%.
• Bund futures are up 0.32 today at 161.33 with 10y Bund yields down -1.4bp at 0.368% and Schatz yields down -1.7bp at -0.364%.
• Gilt futures are up 0.49 today at 122.29 with 10y yields down -4.1bp at 1.521% and 2y yields down -7.0bp at 1.216%.