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Mark Lower In Inflation Expectations Survey Adds Fresh Support

GILTS

The latest mark lower in the 1-Year component of the BoE/Ipsos inflation expectations survey (down to 3.5% from 3.9% in the prior survey and vs. a peak of 4.9% in August) allows Gilts to nudge further away from session lows as bulls close the opening gap lower, leaving the contract +35 or so. Cash Gilts sit 0.5bp cheaper to 3.5bp richer, twist flattening, with a second-round bid being observed at the moment, likely via Bunds on the back of some ECB speak.

  • SONIA & BoE-dated OIS move in sympathy, off of hawkish session extremes, with the former now flat to firmer through the greens, bull steepening, and the latter pointing to a BoE terminal rate of just over 5.80%
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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