Little Willingness To Sustain Move Beyond Key Yield Thresholds, For Now

Gilts prove a little more resolute than EGBs as comments from ECB Executive Board member Schnabel apply fresh pressure to the latter.

• Earlier today 2-Year Gilt yields showed above 5.00% and 10-Year Gilt yields had a look above 4.45%, although follow through beyond those levels was somewhat limited before a retrace to just below the respective lines at typing (lack of fresh domestic news flow and the fact that a lot of additional BoE tightening is already priced, coupled with well-documented questions re: the British economic outlook if such policy rate levels become reality, probably acted as limiting factors).
• Gilt futures operate off session cheaps but are still 45 ticks lower on the day. BoE-dated OIS pricing is once again showing above 5.90% in policy rate terms, just.