Softer And A Little Steeper To Start

Gilt futures follow broader core global FI markets softer at the open, although the contract is now off worst levels of the day, -20 or so just shy of 95.15 (~20 ticks off worst levels)

• Note that some BBG price feeds are showing 95.44 as the early session high for Gilt Dec ’23 futures. That is wrong, with the early high sitting at 95.14.
• Cash gilt yields are 1-3bp higher across the curve, with modest bear steepening in play.
• Fiscal headlines dominated local press clippings over the weekend, with speculation surrounding the Autumn Statement picking up.
• Firstly, the Telegraph noted its understanding that Chancellor Hunt is “set to announce that public spending will increase by no more than 1% a year for much of the next decade.”
• Meanwhile, the Times flagged that “Hunt is facing renewed calls from Tory colleagues to cut taxes after figures revealed a multibillion-pound improvement in the public finances since March’s budget.”
• Comments from BoE chief economist Pill are set to dominate the local docket today. Pill will participate in a Q&A session on the latest monetary policy report, which, when coupled with the fact that he spoke at the back end of last week, probably limits the scope for fresh, meaningful information.
• Elsewhere, the BoE will sell long maturity gilts this afternoon.