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Widening Vs. Core Global Peers Extends A Little

GILTS

A move through prior session lows in Gilt futures allows today’s underperformance of UK paper vs. global core FI peers to extend further.

  • Futures trade ~100 ticks cheaper on the day.
  • Cash gilts are 4.5-8.0bp cheaper, with 10s leading the weakness.
  • There hasn’t been much in the way of headline flow to flag for the move, although the UK having to rely more heavily on the “kindness of strangers” re: absorbing gilt supply will always get airtime on days like today, while terminal BoE policy rate expectations have tipped back to 6.10%, providing some bearish impetus.
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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