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Move Away From Highs Extends A Little Further

GILTS

The move away from session highs has extended further, futures -13 at 99.72.

  • Bears briefly pushed futures through Tuesday & Friday lows, but the move lacked traction, leaving initial support at the 20-day EMA (99.48) untouched, lows of 99.65 printed.
  • Yields 1-2bp higher across the curve, light bear flattening.
  • There are no conclusive drivers for the latest, contained leg lower, but contributary factors may have included:
  • An uptick for European equity indices
  • Oil futures moving off lows, although they operate well below Friday’s highs
  • Spill over from a move lower in Tsys, perhaps driven by swelling $IG supply.
  • Thinner summer markets.
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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