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Off Highs, Gilts Outperform On Labour Market Signals

BONDS

Core global FI markets are off session highs, after TY, Bund and gilt futures failed to test Friday highs.

  • UK bonds outperform after survey data points to continued softening of the domestic labour market ahead of tomorrow’s official monthly labour market report.
  • BoE-dated OIS shows 69bp of ’24 cuts vs. ~66bp early today. A 25bp cut is fully priced come the end of the June MPC.
  • Macro headline flow has been light, with ECB speak doing little to move markets (consensus continues to look for a June cut, which is fully priced).
  • Comments from BoE’s Mann provide the main scheduled event risk from here.
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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