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MNI BRIEF: Investors Increasingly Eyeing Fiscal Policy -ECB VP

CANADA OCT FLASH RETAIL SALES +0.8%

MNI China Daily Summary: Friday, Nov 24

EZ/UK Bond Supply Calendar: EU-Bond Auct / BOE APF Op Monday

MNI: US NOV FLASH SERVICES PMI 50.8 (FCST 50.4); OCT 50.6

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Light Steepening To Start, BoE DMP Survey & Broadbent Comments On Deck

GILTS
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The bias away from early London bests in wider core global FI markets sees gilts open on the backfoot, leaving the contract a handful of ticks below unchanged levels after the post-settlement rally.

  • Cash gilts run 2-4bp cheaper, with a steepening bias observed. 2s10s are just shy of yesterday’s multi-month highs, while 5s30s are also a little shy of yesterday’s multi-month steeps.
  • Citi have noted that while “the U.S. Tsy-led sell-off appears mainly a re-pricing to higher-for-longer, the absence of buyers is refocusing minds on higher global bond supply. Gilts have been at the forefront of issuance concerns. The net cash requirement jumps this quarter. Further out, the picture is one of persistent supply pressure, potentially preventing any meaningful rally from current levels.”
  • Local headline flow has been relatively subdued since yesterday’s close.
  • SONIA futures are off early highs given the move away from best levels in gilts, showing -0.5 to +0.5,
  • BoE-dated OIS sees a light steepening of the strip, contracts little changed to +2.5bp.
  • The BoE’s latest DMP survey and comments from BoE’s Broadbent headline the local docket today.
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The bias away from early London bests in wider core global FI markets sees gilts open on the backfoot, leaving the contract a handful of ticks below unchanged levels after the post-settlement rally.

  • Cash gilts run 2-4bp cheaper, with a steepening bias observed. 2s10s are just shy of yesterday’s multi-month highs, while 5s30s are also a little shy of yesterday’s multi-month steeps.
  • Citi have noted that while “the U.S. Tsy-led sell-off appears mainly a re-pricing to higher-for-longer, the absence of buyers is refocusing minds on higher global bond supply. Gilts have been at the forefront of issuance concerns. The net cash requirement jumps this quarter. Further out, the picture is one of persistent supply pressure, potentially preventing any meaningful rally from current levels.”
  • Local headline flow has been relatively subdued since yesterday’s close.
  • SONIA futures are off early highs given the move away from best levels in gilts, showing -0.5 to +0.5,
  • BoE-dated OIS sees a light steepening of the strip, contracts little changed to +2.5bp.
  • The BoE’s latest DMP survey and comments from BoE’s Broadbent headline the local docket today.