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Off Session Cheaps, Bull Steepening On The Day

GILTS

The previously outlined demand at today’s green Gilt auction allows Gilts to firm further away from session cheaps, with the early bear steepening bias morphing into a state of bull steepening, as the major bechnamrks run little changed to 3bp richer. That leaves the 2-/10-Year gilt curve sitting ~8bp off inverted cycle extremes. Gilt futures print +20 or so, more than reversing early losses. BoE-dated OIS continues to show terminal rate pricing above 6.30%, albeit with a move back from session highs providing some support to the front end of the Gilt curve. Local headline flow remains light.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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