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Incrementally Lower As BoE Hawkish Dissenter Greene Deploys Higher For Longer Narrative

GILTS

Warnings surrounding the potential for a higher for longer interest rate scenario, along with caution surrounding “incredibly high” wage growth and worry surrounding persistence in services inflation from BoE hawkish dissenter Greene apply modest pressure to gilt futures, but the move is limited thus far. The contract manages to register an incremental fresh session low, last +10 on the day.

  • She also stresses that she isn’t thinking about cuts at present, along with flagging the potential that the real neutral rate has shifted higher.
  • Cash gilts are still 2.5-4.0bp lower on the day.
  • SONIA futures are now -1.0 to +0.25 through the blues, while BoE-dated OIS is essentially unchanged on the day.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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