May 24, 2024 07:14 GMT
Modest Rally On Retail Sales, Not Seen As A Gamechanger For Monetary Policy
GILTS
Gilts rally a little on the back of the previously covered soft UK retail sales data, although SONIA futures are off session highs as the release isn’t viewed as a gamechanger for immediate monetary policy settings (see earlier bullets for further colour on that front).
- Futures show as high as 96.86 before fading back to ~96.80. The contract is closer to yesterday’s low than yesterday’s high.
- Cash gilt yields are 1.0-1.5bp lower on the day.
- SONIA futures are flat to +3.5, a little softer than levels seen into the gilt open.
- Elsewhere, the fall in the UK energy price cap generally matched a closely watched estimate provided by a market watcher in that space.
- The UK calendar is slim today, with London participants eying the long weekend (SONIA and gilt markets will be closed on Monday).
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