July 16, 2024 13:55 GMT
Off Highs On U.S. Data, 2s Briefly Printed Sub-4.00%, Local Event Risk Now Eyed
GILTS
U.S. data leaves gilts 20 ticks below session highs, last 98.55.
- Next resistance at the June 25 high (98.92) remains untested, although the bullish technical threat has increased, with key resistance located above that level at the June 21 high (99.23).
- Cash gilt yields are 2.5-6.5bp lower, with the front end continuing to outperform.
- 2s moved below 4.00% and got within 2bp of the late Dec low (3.964%) in the run up to the U.S. data.
- SONIA futures are back from highs alongside gilts, last -1.5 to +3.5
- BoE-dated OIS shows ~49bp of ’24 cuts after a move beyond 50bp earlier today, while ~11bp of cuts are priced for the August MPC.
- Our preview of the upcoming UK CPI (Wednesday) & Labour market data (Thursday) can be found here.
- Elsewhere, a reminder that the King’s Speech is also set to be delivered tomorrow.
143 words