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Likely Labour Majority Eyed, Downside Risks Noted

GILTS

Futures -28 at 97.42 vs. lows of 97.35. Short-term bearish technical risks are noted. Initial support seen at the July 1 low (96.57). Cash gilt yields 1.5-2.5bp higher.

  • Focus remains on the general election, with a 75-130 seat Labour majority probably the most market friendly outcome. This is likely close to fully priced.
  • We have highlighted downside risks for gilts on outcomes either side of this as those deviations could lead to a departure from relatively centrist policy ideas.
  • Our full election night primer can be found here.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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