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Gilts Turn Positive Following Ramsden Comments

BONDS

Gilts turn positive on the day as BoE’s Ramsden came across a touch dovish, particularly in the flagging of risks to UK inflation now being tilted to the downside.

  • Futures are up 9 ticks at 96.84, though a bearish technical theme remains intact with the contract some 100 ticks lower on the week overall.
  • BoE-dated OIS contracts now price 52bps of cuts through the remainder of ’24 (vs around 42bps before Ramsden’s remarks), allowing the Gilt curve to bull steepen on the day.
  • Bunds are similarly off intraday lows, but the recovery has been more muted.
  • ECB’s Vujcic displayed a degree of caution with his latest comments, not explicitly aligning with the June cut consensus as of yet.

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