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Long End Continues To Lead Friday's Recovery

GILTS

Gilts rally alongside global peers in the wake of the U.S. data.

  • Futures breach yesterday’s high as they peak at 96.33, which will give bulls some limited reprieve.
  • Still, the overarching bearish technical picture is intact, with initial resistance levels some way off.
  • The long end continues to outperform on the day, with the curve flattening as yields fall by 2-7bp.
  • Both 2s10s and 5s30s stick to the ranges seen in recent weeks.
  • Greater detail re: BoE pricing can be seen in the previous bullet, with recent ranges remaining intact there after modest dovish moves kicked in post-U.S. data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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