Looking Elsewhere For Cues Early On, Supply Due

Gilt futures briefly tick lower at the open, with U.S. & German peers operating a touch below levels seen at yesterday’s gilt futures close, before a before a light bid comes in across core global FI markets.

• That leaves futures +25 after yesterday’s post-settlement uptick, while cash benchmarks run 0.5-1.5bp richer.
• SONIA futures are flat to +2.5 through the blues, given the uptick from lows in bond futures.
• BoE-dated OIS shows ~22bp of tightening for Thursday’s MPC decision, while terminal policy rate pricing continues to hover around 5.65%.
• The latest BCC survey revealed that 46% of the firms surveyed noted that BoE rate rises to date are negatively impacting their business, while 45% said that they were not directly impacted.
• ’53 gilt supply headlines domestically today.