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Ticking Further Away From Best Levels Post German Regional CPI, Although Pullback Limited

GILTS

Initial reaction to the German regional CPI readings helps tilt gilt futures further away from best levels, with the contract last showing +40 at 99.28 (pullback lows of 99.17 registered), although full details of the data and the implied run rate for the national German CPI reading limit the knee-jerk move lower. Round number resistance at 100.00 remains untested as a result.

  • Cash gilt yields are 1.5-3.5bp lower across the curve, with a light bull flattening move seen.
  • SONIA futures show flat to +5.0 through the blues, while BoE-dated OIS moves away from dovish session extremes to last show ~104bp of cuts through ’24.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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