Off Lows Despite PMIs, Wider Matters eyed

Futures last show -20 at 97.17 (range 96.92-97.49).

• The Feb low/bear trigger (96.81) was untouched during the early sell off, which was driven by wider weakness in core global FI.
• Futures roll activity picks up and is starting to account for a greater share of outright volume.
• Cash gilt yields are little changed vs. yesterday’s closing levels outside of 2s which are ~3bp lower on the day.
• Only 5s managed to register an incremental fresh YtD high during the early sell off.
• There has also been some interest in Winterflood Securities offering primary gilt market access to retail investors (more on that to come), with an eye on growing demand/global trends.
• SONIA futures are +0.5 to -3.0 through the blues, with global core FI swings.
• BoE-dated shows 66bp of ’24 cuts after printing closer to 60bp during the early bond weakness.
• Wider FI swings have driven the short end, with no change in tone from BoE MPC member Greene earlier today.
• The local docket is slim for the remainder of the day.