June 28, 2024 07:51 GMT
Month-end Extensions & Wider Inflation Data Eyed After Yesterday’s Recovery From Lows
GILTS
Gilt futures trade either side of 98.00 early today, little changed.
- The recent pullback in the contract is considered corrective from a technical standpoint.
- Yesterday’s low (97.63) presents initial support, while Wednesday’s high (98.54) presents initial resistance.
- Yields are flat to 1bp higher.
- SONIA futures are -2.5 to +0.5.
- Broader core global FI markets have recovered from overnight lows that came as Biden struggled in the first U.S. Presidential debate.
- French & Spanish HICP data met expectations, providing little for EGBs & broader bonds to trade off.
- Modest positive revisions in the final UK Q1 GDP data also failed to impact markets.
- Italian CPI data & U.S. PCE are eyed ahead of the weekend.
- Elsewhere, sizeable gilt month-end index duration extension flows (based on projections) could play a part as well.
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