Off Lows, A Touch Cheaper On The Day, Looking Elsewhere For Cues

Gilt futures sit around the middle of a 35-tick session range, last showing -25, operating within yesterday’s boundaries.

• The major cash benchmarks print 1-2bp cheaper on the day, as the curve flattens at the margin.
• The space has looked elsewhere for direction at times.
• SONIA futures are +0.5 to -4.0 through the blues, twist steepening, but off session lows.
• BoE-dated OIS is little changed on the day,
• Final manufacturing PMI data saw an improvement on the flash reading at the headline level, but the index remains deep in contractionary territory.
• There was a larger than expected fall in the monthly Nationwide house price index, with worry surrounding the property space well-documented.
• There has also been some coverage of the increase in the usage of buy now pay later schemes to cover essential UK household costs such as grocery shopping, which isn’t a welcome finding.
• Comments from BoE’s Pill shouldn’t be too market moving later today, as he spoke yesterday, with more focus on the impending tier 1 U.S. data releases.