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Off Highs Alongside Peers

GILTS

Gilts back from early highs alongside core global peers.

  • Mixed Spanish CPI data helped limit early rallies before intervention speculation re: the JPY picked up.
  • Futures last +2 at 99.49 (99.44-79 range).
  • Cash gilt yields are little changed to 1bp higher..
  • SONIA futures are also off highs, -1.0 to +1.0 through the blues.
  • BoE-dated OIS prices ~74bp of ’24 cuts, little changed on the day
  • The local calendar is very light today, with just the minutes of the BoE’s latest FPC meeting due. That shouldn’t be a market mover.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
May-245.145-4.5
Jun-245.016-17.4
Aug-244.865-32.5
Sep-244.736-45.4
Nov-244.581-60.9
Dec-244.451-73.9
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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