Wider Cheapening Bias Applies Some Modest Pressure

Gilt futures look to ECB- & Fed-speak at the open, which has helped bias wider core global FI markets lower to start the week.

• The contract finds some support ahead of 99.80 and recovers to the 100.00 area, last -15 or so.
• Cash gilts sit 2-3bp lower, with the belly leading the move.
• SONIA futures look to gilts since the open, ticking lower before stabilising off lows. Contracts sit 0.5-3.0bp lower through the blues.
• BoE-dated OIS still shows ~131bp of cuts through ’24, in line with pre-gilt trading levels.
• Political/geopolitical headlines continue to dominate in the local press, while this week’s UK economic focus will fall on inflation (Wednesday) and labour market (Tuesday) data.
• The latest round of Rightmove house price data was a little more upbeat/less downbeat.
• Long bucket APF sales from the BoE headline today.