Free Trial

March Gilt future opened 23 ticks......>

GILT SUMMARY: March Gilt future opened 23 ticks lower and then traded into a
very tight 17 tick range for the rest of the session with volumes down over 50%
on average, with little new news seen to direct markets. The 10-yr point on the
yield curve has been the worse performer throughout the day.
- 2-yr Gilt yield is +0.8bp at 0.668%, 5-yr +0.9bp at 1.062%, 10-yr +1.6bp at
1.598%, 30-yr +1.2bp at 1.986% and 50-yr +1.2bp at 1.771%.
- There was some positive responses from PM May's speech on security after
Brexit over the weekend and the feeling is that the UK's direction following the
split is gradually becoming clearer. Although Guy Verhofstadt warned that there
would only be an "annex" inside the withdrawal agreement as a Brexit trade deal
would not be agreed by October, this is probably the best the UK could expect.
- Markets still waiting for comments from BoE Carney at 1745GMT today, but is
unlikely to touch on monetary policy. First major UK data will be released
Wednesday when latest public sector borrowing and labour report cross the wires.
- Breakevens are steady to 1bp wider/steeper, while swap spreads are also steady
to 1bp wider.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.