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The Underperformer

GILTS

Gilts underperform wider core global FI markets, after a recovery from early session cheaps gave way. This allowed futures to move to fresh session lows, albeit comfortably remaining within the recent ranges, -40, while cash Gilts run 2-4bp cheaper across the curve, with the 2-/10-Year yield spread operating just off multi-decade inverted extremes. BoE’s Dhingra offered familiar dovish tones, albeit with a hat tip to concerns re: food price inflation, with terminal rate pricing on the BoE-dated OIS strip consolidating around the 6.25% mark.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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