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Tight Start, Mann Eyed

GILTS

Gilt futures operate within the lower end of yesterday’s range.

  • Contract last -3 at 97.49 (97.43-71 range).
  • Cash gilt yields are little changed to 1bp lower.
  • Hedging flow surrounding the GBP4bn launch of the new 7-year gilt have passed, with auction metrics mixed (strong cover wide tail).
  • SONIA futures are essentially flat on the day, while end of ’24 BoE-dated OIS pricing is little changed, showing 60bp of cuts.
  • Local headline flow continues to be dominated by Budget speculation, with a focus on limited room for fiscal easing.
  • Comments from BoE hawk Mann headline Wednesday’s UK calendar.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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