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Slight Softer Start

GILTS

Gilts a little weaker on the day, following wider core global FI markets early today.

  • That leaves futures -20 at 98.23 (early range 98.11-41).
  • A break below 98.00 would expose the 76.4% retracement of the Feb 29-Mar 12 rally (97.67)
  • Cash gilt yields are 1.5-3.0bp higher, light bear flattening of curve.
  • SONIA futures unchanged to -4.5, a little above lows, around levels seen pre-gilt open.
  • BoE-dated OIS shows 61.5bp of ’24 cuts.
  • A 25bp Aug cut is no longer fully discounted, the contract shows ~24bp of cuts.
  • The latest BoE’s inflation attitudes survey headlines domestically today.
  • UK PM Sunak has ruled out a May 2 general election.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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