Free Trial

Reluctant To Bounce In Wake Of Domestic GDP Data, Gilt/Core Bond Spreads Widen

GILTS

Gilts remain more reluctant than major counterparts when it comes to moving away from session cheaps, even as equities struggle and Chinese credit/money supply data disappoints.

  • Firmer than expected domestic GDP data is in the driving seat, with Gilt/core bond spreads wider on the day.
  • That leaves futures -90. Technically, the move lower in the contract signals scope for an extension towards 93.45 next, a Fibonacci retracement. Initial firm resistance to watch is at 96.19, the Jul 31 high.
  • Cash benchmarks run 4.0-8.5bp cheaper, with 10s leading the weakness.
  • The BoE-dated OIS strip runs a little steeper on the data, while SONIA futures are +0.25 to -9.0 through the greens, twist steepening.
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.