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Underpinned Into NFPs

GILTS

Weaker equity markets fuel a rally in core global FI early Friday, with another round of pre-NFP positioning (BBG whisper number has moved lower) seemingly factoring in as well.

  • Futures +53 at 100.09. representing session highs.
  • Bulls now eye the Aug 14 high and bull trigger (100.30). A break there would further solidify their technical control.
  • Yields 3-4bp lower, another round of modest steepening seen on the curve.
  • SONIA futures just off highs, last flat to +5.0.
  • BoE-dated OIS still shows ~45bp of cuts through year end.
  • Expect the NFP release and subsequent Fedspeak to dominate today, with little of note on the UK calendar until Tuesday’s labour market report.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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