May 07, 2024 11:48 GMT
Rally In Futures Stalls Ahead Of 98.00
GILTS
Gilts remain underpinned on the day. Softer-than-expected German factory orders data and the RBA decision provided some spill over support after the long London weekend.
- Softer-than-expected BRC retail sales data may also have factored in, although that release isn’t usually a major market mover.
- The rally in futures breached the 50-day EMA (95.65) before running out of steam ahead of round number resistance (97.97 high), to last trade +85 at 97.81.
- Wider core global FI markets also move away from best levels.
- The bearish technical picture remains in place for the contract, although bulls have negated some of the short-term technical threat on the break above the 50-day EMA.
- Cash gilt yields are 5-8bp lower across the curve, with 10s and 30s leading the rally.
- Local headline flow has been fairly limited since the gilt open.
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