Holding Cheaper, Meandering Through Thursday, Repo Usage Headlines Have Little Impact

Some contained swings seen in gilts since the U.S. data, with futures registering a new low before bouncing to trade just shy of their morning peak. The contract last trades -25, ~10 ticks shy of the top of its contained ~45 tick range, sticking comfortably within yesterday’s boundaries thus far.

• Cash yields are 3-5bp higher on the day.
• Technical parameters flagged earlier remain untouched and still set the initial boundaries.
• There has been little in the way of meaningful domestic headline flow since the previously covered record usage of the BoE’s short-term repo facility (which still prints under GBP5bn) became apparent. Sell-side names explained it away by pointing to arbitrage opportunities, as we highlighted at the time.