Holding Cheaper & Steeper, Global Dynamics Helping

Gilt futures last show -70 at 97.95, just off fresh session lows.

• Cash gilt yields are 4.5-8.0bp higher on the day, with the curve bear steepening.
• Weakness in wider core global FI markets provided the impetus for the early softening in gilts, allowing participants to look through the 3-year low in wage growth and slowing in hiring registered in the latest KPMG-REC labour market survey.
• Mixed dynamics within the BoE-Ipsos inflation attitudes survey provided little in the way of definitive steer for gilts with the early session lows in futures holding during the initial post-release downtick (which was presumably a result of the move higher in 5-year inflation expectations), before being broken in more recent trade.
• Wednesday’s boundaries remain intact.
• SONIA futures have followed gilts lower, last showing flat to -6.0 through the blues.
• BoE-dated OIS is little changed to 2.5bp firmer through ’24 MPC contracts.
• There isn’t much to note on the local calendar through the remainder of today’s session, with broader macro focus falling on the NFP release, particularly given the extent of the recent dovish repricing for the Fed/global central banks.