Weakness In Futures Doesn’t Go Beyond Friday’s Low

Gilt futures base at Friday’s lows (99.38), leaving the contract comfortably within its recent range, last -3 at 98.50.

• The technical picture remains bullish, resistance at 99.25 & support at 98.21.
• Yields are 1bp higher to 1bp lower, as the curve flattens.
• 2s10s ~2bp flatter on the day at -11bp vs. recent ’24 highs of -5.5bp.
• 5s30s ~1.5bp flatter on the day at ~64bp vs. recent multi-month highs of 68.2bp.
• Gilt-centric discussions revolve around month-end matters, given projections for much larger than expected duration extensions.
• Elsewhere, BoE focussed discussions continue to debate the relevance of last week’s “finely” balanced decision for some MPC members (more on that to follow).