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Recovering Alongside Tsys

GILTS

Gilts follow U.S. Tsys away from lows, meaning that bears have not been able to test initial support in gilt futures (95.36). The contract recovers to ~95.80 after basing at 95.42.

  • The bearish technical backdrop remains intact.
  • Benchmark yields are flat to 1bp higher, light bear flattening intact on the broader curve on the day.
  • 10+-Year yields failed to register fresh ’24 highs during this morning’s sell off.
  • SONIA futures tick higher alongside gilts, to last show -1.5 to +1.5 through the blues.
  • BoE-dated OIS also joins the move, last showing ~39bp of ’24 cuts.
  • Local headline flow has been light since this morning’s 10-Year gilt auction from the DMO.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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