Free Trial

Slightly Firmer Than Expected CPI Pressures

GILTS

Slightly firmer than expected domestic CPI data provided the source of pressure in early gilt trade.

  • Although the move wasn’t seen as a gamechanger for the BoE, given the transient nature of the drivers of the prints, BoE pricing has seen a modestly hawkish adjustment.
  • That leaves gilt futures running -45, ~15 ticks off lows.
  • Support to watch lies at 92.48, a Fibonacci retracement, which lies a handful of ticks below session lows.
  • Cash gilt yields are 4-7bp higher, with the intermediate zone seeing the most weakness.
  • SONIA futures last show flat to -7.5bp, operating off session loans, with the greens seeing the most weakness.
  • BoE-dated OIS is little changed to 4bp firmer, with the strip steepening. Terminal policy rate pricing sits ~18.5bp above prevailing levels.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.