Off Best Levels, But Still Comfortably Richer

Gilts, like the remainder of the core global FI space, tick away from early Thursday bests, after bulls failed to force a break above 95.00 in futures, while 4.40% in 10-Year yields only saw very shallow breaches.

• Gilt futures are still comfortably higher on the day, +75, ~20 ticks shy of session highs.
• Cash benchmarks are 3-7bp richer, as the curve flattens.
• SONIA futures sit flat to 6bp richer through the blues, also a little shy of highs and flatter on the day.
• The major BoE-dated OIS parameters flagged earlier remain intact i.e. ~28.5bp of tightening priced for next month, while terminal policy rate pricing sits just above 5.85%.
• Domestic headline flow has remained somewhat limited, outside of what we flagged earlier.