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Shy Of Highs But Comfortably Firmer, BoE-Pricing Off Dovish Extremes

GILTS

Gilt futures last +85 or so around 100.95, ~75 ticks off best levels, with wider core global FI metrics seeing similar moves.

  • The May 11 high (101.98) was not tested during today’s early run higher and presents the next meaningful round of technical resistance beyond today’s peak (101.69).
  • Cash gilts run 5-16bp lower on the day, with 5s outperforming and the curve bull steepening,
  • 2- and 10-Year yields have failed to challenge previously outlined May support levels.
  • 2s10s and 5s30s continue to operate within respective ranges witnessed in recent weeks.
  • SONIA futures sit 0.25-17.5bp firmer on the day, with the late reds and early greens leading.
  • See our recent UK STIR bullet for exacts on BoE-dated OIS pricing and our full BoE preview.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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