Little Changed, Futures Stick Within Yesterday’s Range

Futures (Z4) have stuck with yesterday’s range, last -6 at 98.74.

• Yields little changed to 1bp higher.
• Gilts have followed the lead of wider core global FI markets today.
• The initial rally came alongside some weakness in crude oil.
• A move away from session highs was then seen as EGBs came under some hedging pressure stemming from pricing of some large EUR IG/sovereign deals.
• A panel appearance from BoE hawk Mann failed to generate headlines.
• We suggested this may be the case ahead of time, as there was no livestream of the event. A recording of the discussion will be released at some point, although we don’t have a firm time.
• BoE-dated OIS pricing has been sticky, showing just under 40bp of cuts through the Dec MPC at typing.
• Recent BoE communique has remained non-committal when it comes to the idea of follow up easing, providing some hawkish impetus for GBP STIRs.
• The local calendar is empty on Thursday, with participants looking ahead to the release of DMO’s quarterly issuance calendar on Friday.