Remaining Underpinned

Gilts futures have nudged away from highs after breaching 99.00 (highs 99.01), with the round number previously under threat on several occasions today.

• Futures last show +61 at 98.95. further headway above 99.00 would expose the 20-day EMA (99.43). A break of the 20-day EMA would ease some of the bearish technical pressure that has been evident in trend terms.
• Cash gilt yields last show 2.5-5.0bp lower on the day, with 10s outperforming on the curve. 2s10s and 5s30s sit comfortably within YtD ranges.
• Cross-market impulses have continued to provide the driving factors over the last few hours, with the initial rally derived from ECB speak, yet another increase in geopolitical tensions and a softening in the latest run of domestic Citi/YouGov inflation expectations, sticking.