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Off Bests, U.S. CPI & BoE's Pill Eyed

GILTS

Gilt futures remain happy to operate shy of session bests, sticking comfortably within the well-defined technical parameters we have flagged previously. The contract last shows +25, 20 ticks shy of the peak of its ~60 tick session range.

  • Cash gilts yields are 0.5-2.0bp lower across the curve on the day, with a light flattening seen.
  • This comes with U.S. Tsys also trading a touch richer on the day, while German cash benchmarks sit either side of flat, Bund futures little changed.
  • SONIA futures also operate a little shy of best levels, last showing flat to 4bp firmer through the blues.
  • BoE-dated OIS is little changed to 2bp softer on the session.
  • While it was UK wage-data that generated two-way flow in gilts/STIRs early today, immediate focus is on U.S. CPI data.
  • Comments from BoE dove Dhingra weren’t market moving.
  • BoE chief economist Pill is set to appear later today (13:45 London time, shortly after U.S. CPI data crosses).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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