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Rally Extends

GILTS

A move lower in equity & crude oil futures has allowed gilts to rally.

  • Gilt futures +36 at 98.64, initial resistance (98.53) breached. Bulls now look to the June 25 high (98.92), protecting key resistance at the June 21 high (99.23).
  • Cash gilt yields are 3.5-5.5bp lower, bull steepening.
  • 20-Year supply passed smoothly, with recent cheapening on the 10-/20-/30-Year fly helping generate solid demand metrics.
  • SONIA futures extend early gains alongside gilts, last flat to +8.0.
  • BoE-dated OIS shows 11.5bp of cuts for August and ~51bp of easing through year end, still off recent dovish extremes.
  • Kantar supermarket price metrics showed the lowest Y/Y rise in nearly 3 years.
  • UK CPI & labour market data, as well as the King’s speech, are due over the next ~48 hours.
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A move lower in equity & crude oil futures has allowed gilts to rally.

  • Gilt futures +36 at 98.64, initial resistance (98.53) breached. Bulls now look to the June 25 high (98.92), protecting key resistance at the June 21 high (99.23).
  • Cash gilt yields are 3.5-5.5bp lower, bull steepening.
  • 20-Year supply passed smoothly, with recent cheapening on the 10-/20-/30-Year fly helping generate solid demand metrics.
  • SONIA futures extend early gains alongside gilts, last flat to +8.0.
  • BoE-dated OIS shows 11.5bp of cuts for August and ~51bp of easing through year end, still off recent dovish extremes.
  • Kantar supermarket price metrics showed the lowest Y/Y rise in nearly 3 years.
  • UK CPI & labour market data, as well as the King’s speech, are due over the next ~48 hours.