Still A Little Firmer On The Day

Gilt futures trade a handful of ticks shy of the top of their 32-tick range, last +11 at 100.35.

• The contract sticks comfortably within the range observed yesterday.
• That leaves familiar technical parameters that we have covered on many occasions untouched.
• Cash gilt yields are 1-4bp lower across the curve, with the belly outperforming.
• U.S. CPI data dominates the scheduled macro risk slate today, while the easing of the wider European IG issuance burden vs. the last couple of days provides some spill over tailwinds, at least for now.
• Domestic headline flow and IG issuance remain muted.
• SONIA futures are 0.5-1.5bp firmer through the blues, operating in narrow ranges thus far.
• BoE-dated OIS contracts are flat to 2.5bp softer through ’24 MPC meetings, showing ~121bp of cuts through ’24.