Holding Softer On The Day

As noted elsewhere, gilts were less willing than European peers re: turning bid in early trade, with the pullback in EGBs and tick away from early London bests in U.S. Tsys, along with supply, then filtering through into UK paper.

• That leaves futures -35 at typing, printing around 97.75, ~20 ticks above the base of the early ~50 tick range in the contract, which still sits comfortably within the confines of the boundaries witnessed on Tuesday.
• Cash gilt yields are 2-4bp higher on the day, with the curve bear flattening.
• 10-Year green gilt supply saw a fairly weak reception, applying modest pressure to the market.
• BoE FSR headlines weren’t market moving, household resilience and challenging risks were noted.
• SONIA futures last show flat to 4bp cheaper.
• BoE-dated OIS is little changed to 4bp firmer on the day. ~79bp of cuts are priced through ’24 on the whole, a little under 10bp off November’s dovish extremes.