Rallying In Wake Of Labour Market Data, Syndication Eyed

Gilts follow GBP STIRs higher in the wake of the domestic labour market data, with futures away from yesterday’s late lows, last ~96.50.

• Bulls need to retake the Jun 10/4 highs (96.70/97.86), with the recent recovery deemed corrective, particularly given the sell off witnessed over the past couple of sessions.
• Initial support is seen at yesterday’s low (96.12).
• A reminder that broader core global FI markets had already stabilised ahead of the UK data.
• Cash gilt yields are 2.0-4.5bp lower, as the curve bull steepens.
• 2s10s hit fresh year-to-date steeps (albeit aided by benchmark rolls back in late Feb).
• SONIA futures are off best levels, last flat to +6.0 through the blues, with the reds still outperforming.
• The ruling Conservative Party will unveil its election manifesto today, with tax cuts set to form the centrepiece of that document.
• A reminder that the Conservatives still trail Labour by a wide margin in the polls, with Labour set to reveal their manifesto on Thursday.
• The monthly run of UK GDP & economic activity data is due tomorrow.
• We also remain on the lookout for the new 10-year 4.25% Jul-34 gilt, which will be launched via syndication this week (MNI expects the transaction today).