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Two-Way Flow Around U.S. CPI Revisions, Eyeing U.S. Tsys

GILTS

Gilts more than reverse the initial bid surrounding the U.S. national CPI revisions. Futures hit new session bests at 98.24 before retracing to print below pre-release levels at 97.58 last, following U.S. Tsy cues. Ultimately, the contract trades within the lower extremes of the recently observed range, with key support at the Dec 11 low (97.39) still intact. Cash gilt yields are 1.5-4.5bp higher as the curve bear flattens, after initially moving to richer on the day (lower) status across the curve on the U.S. CPI revisions. We will follow up with a STIR update in due course.

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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