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Sell-Off Extending Ahead Of Cash Close

GILTS

UK rates continue to sell off. BoE peak rate pricing (to Mar 2024) hits a fresh post-Jul 18th high a touch above 6.10%, 85.5bp from current levels.

  • 2Y yields are testing the session high set at the open of 5.628%, with 10Y Gilt yields likewise testing session highs at 4.743%.
  • No particular trigger for these moves but like yesterday the space is weakening about 1.5 hours ahead of the cash close. UK retail sales data comes first thing tomorrow.

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