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Off Lows Alongside Peers, Still Comfortably Lower On Day

GILTS

Gilts follow global peers further away from session lows following the U.S. PPI data, but futures don’t get anywhere near paring their opening gap lower and yields are still 1.5-4.0bp higher on the day.

  • Long end gilt spreads are wider on the day, but 2s and 5s are mixed vs. peers.
  • SONIA futures are down 0.5-5.0, while BoE-dated OIS shows 11.5bp of cuts through August and ~47.5bp of easing through year end, little changed vs. pre-U.S. PPI levels.
  • U.S. UoM sentiment data is eyed before the weekend, but Wednesday’s UK CPI reading will likely be far more consequential for gilts.
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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