EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

MNI: Canada Apr-Aug Budget Deficit Doubles On Spending

CANADA SEPT FLASH RETAIL SALES +0.4%, AUG SALES +0.4%

MNI China Daily Summary: Friday, October 25

MNI BRIEF: China's Next NPC Meeting Scheduled For Nov 4 to 8

MNI: PBOC Net Injects CNY184.2 Bln via OMO Friday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GILTS: Weakness Extends, Set For Fresh Cycle Closing Wides Vs. Bunds

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

Gilt weakness extends a little further since our most recent update, with spill over from the early NY weakness in U.S. Tsys adding to the early sell off.

  • Futures base ahead of round number support, registering a low of 96.01.
  • A break below 96.00 would expose the 1.236 projection of the Sep 17-30-Oct 1 price swing (95.47) and deepen the bearish impulse.
  • Yields 5-6bp higher across the curve, 10s register fresh cycle highs at 4.243%.
  • 5s continue tot trade around multi-week cheaps on the 2-/5-/10-Year butterfly.
  • 10s widen by over 3bp vs. Bunds, spread above 195bp, on track for a fresh cycle closing wide.
  • GBP STIRs continue their hawkish adjustment alongside the weakness in gilts.
  • BoE-dated OIS shows 21bp of cuts for November, 33bp of cuts through December and 89bp of cuts through June.
  • SONIA futures 1-7 lower.
  • Fiscal speculation will continue to dominate locally, while immediate macro event risk comes in the form of the U.S. CPI data (due 13:30 London).
153 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Gilt weakness extends a little further since our most recent update, with spill over from the early NY weakness in U.S. Tsys adding to the early sell off.

  • Futures base ahead of round number support, registering a low of 96.01.
  • A break below 96.00 would expose the 1.236 projection of the Sep 17-30-Oct 1 price swing (95.47) and deepen the bearish impulse.
  • Yields 5-6bp higher across the curve, 10s register fresh cycle highs at 4.243%.
  • 5s continue tot trade around multi-week cheaps on the 2-/5-/10-Year butterfly.
  • 10s widen by over 3bp vs. Bunds, spread above 195bp, on track for a fresh cycle closing wide.
  • GBP STIRs continue their hawkish adjustment alongside the weakness in gilts.
  • BoE-dated OIS shows 21bp of cuts for November, 33bp of cuts through December and 89bp of cuts through June.
  • SONIA futures 1-7 lower.
  • Fiscal speculation will continue to dominate locally, while immediate macro event risk comes in the form of the U.S. CPI data (due 13:30 London).