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Off Lows, Bulls Eye Recent Highs In Futures, Reeves & Haskel Due

GILTS

Gilts have recovered from early lows, futures last -9 at 97.92.

  • Friday’s high protects the June 28 high (98.24). A clear break higher would put bulls in control after an early July pullback.
  • Yields are unchanged to 1.5bp higher, curve a touch steeper.
  • Fallout from the French election dominates so far.
  • The DMO confirmed that a long gilt will be sold via syndication in September, this had no tangible impact on markets.
  • SONIA futures are essentially flat. BoE-dated OIS is also little changed, showing ~15.5bp of cuts for the Aug MPC and ~47.5bp of easing through year end.
  • BoE hawk Haskel will speak at 17:15 London, text to be released at 12:00.
  • Chancellor Reeves will speak at 10:30. She is set to make kickstarting growth a "national mission," housebuilding targets/goals are also due to be outlined.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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