January 24, 2025 08:10 GMT
GILTS: Rallying On Trump's Latest Tariff Comments, PMIs Eyed
GILTS
Gilts follow peers higher after U.S. President Trump noted that he would rather not use further tariffs against China during Asia hours.
- Futures +24 at 92.13.
- Bearish technical setup remains in place in the contract, initial support and resistance located at 91.10/92.52
- Yields ~2.5bp lower across the curve.
- GBP STIRs roughly in line with levels provided in our pre-gilt open bullet.
- Gilts 2bp tighter to Bunds, spread last ~206.5bp.
- Flash PMIs headline the UK calendar ahead of the weekend. As we have already noted, the data may generate a larger than usual market reaction given downside risks to UK economic growth.
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