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GILTS: Lower Alongside Bunds

GILTS
CEEMEABulletUKMarketsFixed Income Bullets

Gilts follow Bunds lower.

  • Futures trade as low as 92.58.
  • Yields ~4.5bp higher, last week’s highs untested across the curve.
  • A marginal downtick in final UK Q3 GDP data and the relative resilience in Tsys (which gilts have a higher beta to) fails to promote outperformance vs. German paper at this stage.
  • Spread last 1.5bp wider, just below 224bp. Last week’s closing cycle high at 231.3bp.
  • SONIA futures tick lower given impact from gilts and Europe, last flat to -4.0. They were little changed in early trade.
  • BoE-dated OIS still showing ~61bp of cuts through ’25.
  • Little of note on the UK calendar for the remainder of the week, which will leave focus on macro headline flow.
  • A reminder that the Christmas holiday period will result in adjusted trading hours/closures, as well as depleted liquidity and volume.
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Gilts follow Bunds lower.

  • Futures trade as low as 92.58.
  • Yields ~4.5bp higher, last week’s highs untested across the curve.
  • A marginal downtick in final UK Q3 GDP data and the relative resilience in Tsys (which gilts have a higher beta to) fails to promote outperformance vs. German paper at this stage.
  • Spread last 1.5bp wider, just below 224bp. Last week’s closing cycle high at 231.3bp.
  • SONIA futures tick lower given impact from gilts and Europe, last flat to -4.0. They were little changed in early trade.
  • BoE-dated OIS still showing ~61bp of cuts through ’25.
  • Little of note on the UK calendar for the remainder of the week, which will leave focus on macro headline flow.
  • A reminder that the Christmas holiday period will result in adjusted trading hours/closures, as well as depleted liquidity and volume.