Rallying, Futures Below Yesterday's High

Gilts rally alongside global peers, following continued weakness in equity markets and crude oil.

• Futures don’t manage to test yesterday’s highs/initial resistance (99.25), last 99.15 vs. opening highs of 99.21.
• The technical set up in the contact remains bullish. A fresh extension higher would target the Aug 22 high (99.85).
• Yields 2.5-3.0bp lower across the curve, with only 10s seeing a marginal breach of yesterday’s lows.
• SONIA futures remain underpinned, last flat to +3.0, just off early session highs.
• Final services PMI data headlines the UK calendar today, although that shouldn’t be too much of a market mover, leaving focus on wider macro headlines/cross-market swings.