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Rally A Little, Monday’s High In Futures Eyed

GILTS

Gilts rally at the open, with spill over from solid demand at yesterday’s 3-Year Tsy auction and a dovish RBNZ outcome providing support.

  • Futures +48 at 98.16. Initial resistance at the July 8 high (98.27), a break above there would threaten the bearish short-term outlook.
  • Gilt yields are 2-4bp lower, curve a touch flatter.
  • A second-round bid comes into STIRs alongside the gilt rally, SONIA futures flat to +5.5.
  • Comments from BoE’s Pill & Mann will headline today.
  • We will provide greater colour on those appearances shortly.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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