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Pressured By UK PMI

GILTS

The firmer-than-expected UK PMI data weighs on UK fixed income markets. Gilt futures trade as low as 98.28, moving into negative territory on the session.

  • Bears will aim to close the opening gap (98.23) before targeting yesterday’s low (98.20), which protects the Jan 17 low (98.00).
  • Cash gilt yields are now little changed to 1bp higher on the day, with the early move lower unwound.
  • SONIA futures print flat to -2.0 last, while BoE-dated OIS moves back to little changed on the day, showing ~99bp of cuts through ’24.
  • ~24bp of cuts are now seen through the June-24 MPC, meaning a 25bp is not quite fully discounted at that juncture.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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