Off Lows, Curve Twist Steepens

Gilts futures have recovered from the opening move lower, as have wider core global FI markets.

• The contract last shows little changed, just shy of 100.20.
• Gilt futures had a limited and brief look through Friday’s low around the open, but bears failed to get anywhere near forcing a test of the early ’24 base, befor a recovery was seen.
• Cash gilts run 1bp lower to 4bp higher, twist steepening.
• A quick reminder that wider weekend central bank rhetoric (from the Fed & ECB) helped apply some modest pressure as European participants filtered in this morning.
• There has been little to note on the local news front, leaving wider market moves/macro headline flow at the fore.
• SONIA futures have also recovered from lows, to last trade -1.0 to +3.5 through the blues.
• BoE-dated OIS is 0.5bp firmer to 1.5bp lower on the day. ~135bp of cuts are showing for ’24, with the first 25bp cut essentially discounted come the end of the May ’24 MPC.
• Long bucket APF sales from the BoE headline domestically today.