Twist Flattening Intact, Futures Stick To Familiar Ranges

Little to separate gilts from wider core global FI in the last few hours.

• There was a recovery alongside peers, with outright yield levels and a downtick in benchmark energy futures seemingly factoring in.
• Still, bulls failed to force a test of yesterday’s high in gilt futures, leaving the contract to operate in familiar territory as it fades away from session highs.
• The overarching bearish technical theme remains intact despite today’s shallow bounce.
• The contract last prints +20 at 96.49 (96.01-70 range).
• Twist flattening has developed further, with this morning’s CPI data leaving its mark on the front, even as BoE-dated OIS pulls back from post-data extremes.
• Benchmark yields are 2bp higher to 3bp lower.
• 2s10s and 5s30s stick to familiar ranges, after pulling back from the multi-week highs seen in early April.