Tight Ranges & Familiar Technicals In Play Into U.S. CPI

Fresh session highs for gilt futures, but the contract still operates within an extremely narrow 28-tick range (98.73-99.01).

• From a purely technical perspective a bear threat in gilt futures remains present. Sights are on the key short-term support at the Mar 15 low (98.05).
• Conversely, initial resistance comes in at the Apr 4 high (99.37). That protects key resistance and the bull trigger at the Mar 12 high (100.37).
• Cash gilt yields are 1-2bp lower across the curve, with a light flattening bias.
• SONIA futures are little changed on the day, while BoE-dated OIS shows ~72bp of ’24 cuts.
• Macro news flow remains limited with focus on the impending U.S. CPI data.