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Free AccessHeavy Start As JGB Impulses Feed In
A heavy start for gilts as the Japan-centric drivers flagged elsewhere dominate at the open.
- Futures trade as low as 98.23, before moving to the 98.30 area, -50 or so on the day.
- Meaningful support isn’t seen until the Dec 6 low/Nov 30 lows (97.66/96.10).
- Cash gilt yields are 4-5bp higher, with a modest steepening bias seen.
- SONIA futures are unchanged to -4.5, while BoE-dated OIS is little changed to ~3.5bp firmer on the day through ’24 MPC meetings. UK STIRs are a little off hawkish session extremes, with no real net movement seen since our pre-gilt open update.
- See the earlier STIR comment for domestic news flow of note, but external factors have been the major driver thus far.
- The local docket is empty today.
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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.