Twist Steepening The Driving Force As BoE Press Conference Ends

Gilts move to fresh session lows, with futures ~85 ticks cheaper, while cash benchmarks sit 5bp richer to 9bp cheaper, twist steepening. BoE-dated OIS & SONIA futures are off dovish session extremes, with the BoE post-meeting press conference playing down any talk/speculation of rate cuts. The 2s/10s and 5s/30s curves sit at fresh multi-week highs (although the former remains deeply inverted), with BoE re-pricing, previously covered global impulses and curve positioning probably helping there. Note that futures are through previously outlined technical support (94.20), opening the way to the next support level at 93.45, as the recent bearish move extends. Bullish oil headlines are also aiding the outright cheapening at typing.