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Holding Rally, 5+-Year Zone Lagging EGBs

GILTS

Gilts have looked to wider macro drivers (European inflation data and slightly lower energy commodity prices) on Monday.

  • Futures trade as high as 96.53 on the day but are still some way shy of key resistance areas flagged earlier, leaving the well-defined bearish technical backdrop in play.
  • Cash gilt yields are 3.0-4.5bp lower, with the front end outperforming on the session.
  • The medium-term gilt sale from the BoE’s APF was easily absorbed.
  • GBP STIR movements are detailed in our recent STIR bullet.
  • Lower tier UK survey, credit and money supply data are due tomorrow, along with the GBP4.0bn launch of the new 5-year 4.125% Jul-29 gilt.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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