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Twist Flattening Observed, Futures Flirting With Early Lows

GILTS

Gilt futures have not been keen to push beyond the early session low during the latest round of cheapening, with only an incremental look below the level, while the space remains vulnerable to external drivers/cross-market spill over given the lack of domestic drivers evident today. Cash Gilts run 9bp cheaper to 1bp richer as typing, twist flattening. SONIA futures are as much as 10.5bp cheaper through the reds/greens, while BoE-dated OIS shows a terminal rate of just over 5.85%.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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