Holding Cheaper On The Day, Off Worst Levels

Little in the way of meaningful headline flow to force movement in gilts over the last few hours, leaving the space off session cheaps.

• Futures are -55, printing around 95.40. A quick reminder that bears ran out of steam before they could force a test of clustered support including the Nov 13 low (94.58). The contract is ~35 ticks off the base of its 64-tick range. Bulls have not threatened a test of opening highs/close of the opening gap lower.
• Cash gilt yields are 2.0-4.0bp higher on the day, with light bear steepening seen.
• 2s10s and 5s30s curves operate a little above multi-week lows registered in recent sessions as a result.
• STIRs have moved off hawkish extremes as gilts stabilise.
• That leaves SONIA futures flat to -5.0 through the blues, while BoE-dated OIS contracts are flat to 2bp firmer through the ’24 MPC contracts