Free Trial

Recovery Stalls

GILTS

The Gilt bounce runs out of steam over the last hour or so. BoE-dated OIS pricing is incrementally firmer vs. our previous update, but the early session, post-CPI extremes remain comfortably untouched. ~34bp of tightening is showing for tomorrow, while terminal rate pricing has nudged back above 6.00% in policy rate terms. Sell-side reports have seen some hawkish adjustments when it comes to terminal rate calls, although none of the reports that we have seen look for a 50bp hike tomorrow (albeit with plenty of hawkish caveats present). Cash Gilts sit 7-12bp cheaper as a result, while futures are -90 or so, edging closer to the middle of today’s range.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.