Repost: Off Early Lows

Gilt futures ticked lower at the open. Nothing in the way of lasting BoJ dovish sources feedthrough for core global FI markets was noted. The contract didn’t test Friday’s low.

• The contract has bounced to last show -30 or so at 97.90, ~30 ticks off the early session low.
• Cash gilt yields are 0.5-2.0bp lower on the day, with the wings outperforming.
• 10-Year yields hold above 4.00% after last week’s limited forays below.
• Domestically, continued focus on the potential for pre-election income tax cuts is seen.
• SONIA futures last show flat to -4.5, while BoE-dated OIS is little changed to 1bp firmer on the day through ’24 MPC meetings.
• While there isn’t much in the way of concrete news flow to trigger the moves in SONIA futures, an uptick in U.S. yields will be helping. Elsewhere, the BBG BoE survey re: the upcoming meeting notes that “UK Economists Say Bank of England May Warn Against Rate Cut Bets,” which may be having some very light impact.