Light Cheapening At The Open, BoE Doves Due Later

Gilt futures cheapen a touch in early trade, in sympathy with moves seen in wider core global FI markets, while global equity futures have advanced. That leaves the contract comfortably within yesterday’s range, last trading -25 or so, while the major cash benchmarks are 0.5-1.5 cheaper as the 2-/10-Year curve remains deeply inverted.

• Local news flow has been light since yesterday’s close, with further, modest relief for shoppers noted as the BRC shop price index inflation print slowed a touch.
• BoE-dated OIS has seen terminal rate pricing stabilise just below the 6.25% mark in policy rate terms.
• BoE speak from the dovish Dhingra and (outgoing) Tenreyro, as well as the latest round of Nov-33 I/L supply provide the points of note on today’s local docket.