Little Changed, Bearish Technicals Intact

Gilts stick to narrow ranges.

• Futures last +28 at 98.23 (98.15-42 range).
• Bulls couldn’t test initial resistance at the 50-day EMA (98.48) early today, with the bearish technical picture remaining intact.
• Yields are unchanged to 1.5bp lower across the curve, withs 30s outperforming.
• Broader core global bond markets are off early London highs.
• Note that some BBG generic yield movements are being skewed by benchmark switches e.g. GUKG2 shows 29bp lower on the day.
• SONIA futures are -1.5 to +2.0 through the blues.
• ~67bp of cuts are priced through ’24 on the BoE-dated OIS strip, familiar levels.
• Local headline flow remains light, which leaves discussions centred on the building global IG issuance schedule and cross-asset moves.
• Comments from BoE’s Pill are due shortly.
• We will also see the results of the BoE’s APF sale of GBP650mn of long gilts.