Off Yesterday's Lows

Gilts trade away from yesterday’s lows at the open, following global peers.

• Futures +11 at 99.59, after a close below the 20-day EMA increased the threat to the underlying bullish technical picture.
• Bears will look to force a test of the Aug 8 low (99.20) next), while initial resistance remains a last week’s high (100.80).
• Yields 1-2bp lower across the curve.
• The DMO has appointed bookrunners for the new 31 Jan 2040 gilt (launch already confirmed for w/c 2 September). We pencil in issuance size of GBP6bn.
• Looking ahead, BoE Governor Bailey will speak from Jackson Hole (text 16:00 London, speech 20:00). Macro matters will dominate ahead of Bailey’s comments, with Fed Chair Powell’s Jackson Hole address eyed.