Looking To Wider Cues Early On Monday

Weakness seen elsewhere in the core global FI sphere applied some spill over pressure to gilts at the open (reasoning for wider moves is covered elsewhere) before the space stabilised.

• That leaves futures running little changed on the day, ~5 ticks off the high of the early ~40 tick range.
• Cash gilt yields show 1.0-3.5bp higher as the curve bear flattens.
• SONIA futures are flat to 5bp softer, with the reds leading the weakness there. Contracts are off worst levels alongside the move in gilts.
• BoE-dated OIS is little changed to3bp firmer through ’24 MPC contracts.
• In terms of local news flow, weekend comments from PM Sunak produced a more explicit linkage between spending reduction and tax cuts.
• Known polling headwinds for the Conservatives/PM also got some airtime.
• Still, it has been wider matters that dominate for gilts.
• Comments from BoE dove Dhingra headline the domestic docket today. She will speak at the 'Ending stagnation' conference later this morning (11:30 London).