Signs Of Sticky Inflation In DMP Limit Recovery, Wider Vs. Peers

Gilts lag the recovery from session lows in wider core global FI markets.

• While the BoE DMP survey wasn’t a particular market mover, signs of sticky inflation seem to be promoting some underperformance.
• Futures -5 at 99.21.
• Cash yields are unchanged to 4.5bp higher as the curve bear flattens.
• SONIA futures flat to -4.0, a little above session lows.
• BoE-dated OIS shows ~60bp of cuts for ’24, sticking to the recent range.
• The DMP also limits any dovish flows in GBP STIR markets.
• Post-budget fiscal discussions continue to dominate locally.
• There is little of note on the UK calendar during the remainder of Thursday’s session, which will leave focus on wider market matters, including the latest ECB decision.