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Off Highs As Risk Sentiment Stabilises

GILTS

Gilts move further away from session highs on the back of the U.S. ISM services data.

  • The space had already pulled back from best levels as e-minis traded away from lows and the latest round of medium-dated APF sales from the BoE saw tepid demand, generating a bid to cover of ~1.5x.
  • Futures briefly moved below 100.50, before recovering to 100.70.
  • Cash gilt yields unchanged to 5bp lower on the session, with the 7- to 10-Year zone now underperforming (presumably driven by the tepid demand at the APF sale).
  • The front end of the curve continues to outperform.
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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