Little Changed, NFP Eyed As Weekend Nears

Gilts hold to narrow ranges, with futures happy to trade within recent boundaries.

• The contract last prints -9 at 97.62.
• That leaves initial support and resistance in the form of Tuesday’s range extremes (97.08 & 97.86) untouched, with the recent bullish recovery in the contract deemed corrective at this juncture.
• Cash gilt yields are little changed to 1bp higher after failing to challenge May lows during the recent rally.
• SONIA futures are essentially unchanged through the blues.
• BoE-dated OIS shows 38bp of cuts through year end, also little changed on the day.
• The UK calendar is light to end the week, with Halifax house price data not market moving and already in the rear-view.
• Local focus on political matters ahead of the July 4 election provides little for gilts to trade off, with wider macro influences set to have more impact into the weekend.
• That leaves U.S. NFPs front and centre.
• A reminder that the S&P-KPMG-REC labour market report will hit in the early hours of Monday morning.
• Slightly further out, Tuesday will see the monthly run of labour market data cross, while Wednesday provides the monthly run of economic activity and GDP data.
• The BoE remains in its pre-election quiet period, with the only appearances of note in that window set to come via scheduled meetings e.g. the MPC decision on June 20.