May 17, 2024 12:59 GMT
Off Lows, Still Softer On Day
GILTS
Round number support at 98.00 in gilt futures held, with a recovery to the 98.10 area seen in the time since, although the contract is still over 50 ticks lower on the day.
- Initial technical parameters in the contract (flagged on several occasions) remain untouched, leaving the recent bullish technical theme intact.
- Cash gilt yields are 1.5-3.0bp higher on the day, with the 7- to 10-Year zone under the most pressure.
- UK and broader macro headline flow has been very limited over the last few hours, providing little in the way of fresh impetus for market participants.
- Tuesday’s address from BoE Governor Bailey (although the topic and setting mean that he may not cover current monetary policy matters) and Wednesday’s CPI data (with a particular focus on the services inflation components) provide the domestic focal points next week.
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