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Twist Flattening, Futures Either Side Of Flat

GILTS

Gilt futures trade either side of late Friday levels early this week, while cash Gilts twist flatten, sitting 3bp cheaper to ~1bp richer, in sympathy with moves seen in Tsys early this week.

  • Local headlines have focused on well-documented political headwinds for PM Sunak, offering little in the way of actionable news flow over the weekend.
  • The SONIA strip is flat to -4.0 through the reds, while BoE-dated OIS continues to price a terminal policy rate of ~6.30%.
  • The local calendar is a little limited today, with final manufacturing PMI the only point of note. Later in the week, final services PMI (Wednesday) and the latest BoE decision maker panel survey (Thursday) bulk out the local data docket, along with various rounds of BoE speak.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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