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Twist Steepening Now Apparent, Wider Bid Allows Recovery From Session Cheaps

GILTS

The rebound in Bunds from post-SVB meltdown yield extremes and some pre-PCE outperformance for U.S. Tsys has allowed Gilts to recover from session cheaps (last running 2bp richer to 1bp cheaper across the curve, twist steepening, pivoting at 10s) and BoE pricing to tick away from recent cycle extremes (to just below 5.60%), although this week’s moves remain sizeable (see chart below for an overview of week-to-date moves across the Gilt curve). A reminder that numerous fresh year-to-date highs have been registered across the major Gilt benchmarks in recent sessions, with levels not seen since the mini-Budget fallout under former PM Truss being observed.


Fig. 1: Week-To-Date Moves Across The Gilt Curve

Source: MNI - Market News/Bloomberg

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

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