Free Trial

Off Lows, Ranges Still Tight

GILTS

As noted earlier, gilts have stuck to relatively tight ranges.

  • Initial weakness came from feedthrough surrounding broader core global FI markets.
  • Modest downticks in both equity futures and crude oil provided some brief counter, but those impulses have faded.
  • Futures last +1 at 97.92, in a 97.69-93 range.
  • Cash gilt yields sit 1-2bp higher with the curve bear flattening at the margin.
  • Major technical parameters remain untouched, with bulls not able to push futures too far above 98.00 yesterday and 10-Year yields operating above 4.00%.
  • The GBP4bn round of 4.50% Jun-28 gilt supply saw average demand, as covered earlier, but the smooth enough passage and removal of related hedging pressure has helped bulls.
  • SONIA futures are flat to -2.5 through the blues.
  • BoE-dated OIS shows ~73bp of cuts for ’24, with little willingness to push meaningfully beyond pricing 75bp of cuts at present.
  • Softer XpertHR wage data and fiscal speculation dominate local headline flow, but neither have had a meaningful impact.
  • Looking ahead, the MNI event with BoE dove Dhingra highlights the domestic docket today, with lower tier data (CBI trends) also due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.