Light Bid, Dhingra Stays Dovish, Data Eyed Later This Week

Weakness in European equities and a downtick in crude oil futures helps core global FI markets away from session lows, leaving gilts little changed to a touch firmer on the day.

• Light front end outperformance comes after the previously covered comments from BoE dovish dissenter Dhingra, who unsurprisingly reiterated her push for lower interest rates.
• Futures +9 at 98.25. Recent price action in the contract has been bullish. Initial resistance at the July 11 high (98.53), initial support at the July 11 low (97.63).
• Cash gilt yields are 0.5-1.5bp lower across the curve.
• SONIA futures move higher after the gilt open, last flat to +4.0.
• GBP800mn of short-date gilt sales from the BoE’s APF are due this afternoon.
• Looking further ahead, Wednesday’s CPI data and Thursday’s labour market report present the highlights of this week’s UK calendar.