Little Changed Early On, Macro Matters Eyed

Gilt futures fade their opening uptick as bulls fail to challenge yesterday’s high. Contract last deals little changed at 99.00 (98.96-99.15 range).

• Initial resistance is seen at yesterday’s high (99.37), while initial support comes in at the April 3 low (98.16).
• Bulls need to force a break of the key short-term resistance level (100.37) to negate the current bearish threat.
• Cash gilt yields are little changed across the curve.
• Gilt bulls have failed to establish themselves below 4.00% in 10s, despite yesterday’s limited move through that level.
• Wider core global FI markets have pulled back from late Wednesday highs that came on the back of increased worry re: tensions between Israel & Iran, limiting feedthrough at today’s gilt open.
• SONIA futures are little changed through the blues, with tight ranges in place.
• Halifax house price data revealed the first M/M fall in 6 months, but that won’t be a market mover.
• Geopolitical tensions and the U.S. NFP release are set to dominate ahead of the weekend, with no major domestic risk events scheduled.