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Off Fresh Session Highs

GILTS

Gilt futures fail to hold a rally back above 98.00, after bulls fail to test initial resistance at yesterday’s highs. Contract last -14 at 97.87 after topping out at 98.12.

  • The U.S. PPI (lower than expected) and weekly claims (higher than expected) data were the drivers of the rally, with the pullback from post-data bests in Tsys spilling into recent gilt price action.
  • Yields are now 2-3bp higher on the day, taking the edge off the early sell off.
  • Yesterday’s lows in yields were not threatened on the post-U.S. data rally, across all benchmarks.
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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