Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

Holding On To Early Gains


Gilts opened strongly, but have traded sideways for much of the day while still holding on to most of the early gains.

  • Gilt yields are 1-3bp lower on the day with marginal outperformance in the belly. The curve has bull flattened with the 2s30s spread 1bp narrower. Last yields: 2-year -0.0491%, 5-year 0.0565%, 10-year 0.4616%, 30-year 1.0463%.
  • The Mar 21 gilt future trades at 132.53, near the middle of the day's range (L: 132.41 / H: 132.67).
  • BoE Governor Andrew Bailey has argued that Brussels made a mistake in locking London out of EU markets. Bailey's comments risk further denting UK-EU relations, which have been under pressure from previous haggling over the Brexit deal and the recent fallout over Covid vaccinations.
  • The RICS house price balance for January came in lower than expected (50% vs 60% survey). Tomorrow sees the release of preliminary Q4 GDP data alongside industrial production, construction, index of services and international trade .
MNI London Bureau | +44 0203-865-3808 |