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Least volatile open for days

GILTS
  • A slightly less volatile open for gilts than in recent days but we have still traded in a 70 tick range in the first half hour of trading.
  • Gilt futures have already breached yesterday's high of 92.81 with an intraday high of 82.89 seen today.
  • The curve has bull flattened slightly this morning - with 10s30s back at 35.9bp at the time of writing, down from yesterday's high of 49.4bp.
  • Focus for the gilt market will now turn towards external events with US CPI at 13:30BST the big event of the day.
  • We will then switch back to see the takeup in today's linker and long-dated gilt purchase operations at 14:45/15:45BST respectively.

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