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Underperforming - but no clear driver

GILTS
  • Gilts and most of the SONIA strip are sorter this morning, with gilts underperforming both the German and UST curves this morning despite the weaker-than-expected UK retail sales (note that the very front-end of the SONIA curve is showing more cuts following this morning's data, but from mid-2025 onwards there are higher rates).
  • There doesn't really appear to be any obvious reason why gilts are underperforming the broader market this morning but 10-year yields are now 1.5bp higher on the day (versus 0.4bp higher for Bunds and 0.2bp lower for USTs).
  • There's not much on the domestic agenda today scheduled.

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