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Heavy Start As JGB Impulses Feed In

GILTS

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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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