Yesterday's High In Futures Intact, Wider Themes Eyed

Gilt futures continue to respect yesterday’s high/initial resistance (99.25), bests of 99.23 seen thus far, last 99.07.

• Yields ~2bp lower across the curve.
• Benchmark 2s, 5s & 10s saw modest prints below yesterday’s yield lows, but bulls failed to generate meaningful traction on the breaks.
• Equities and oil markets are off lows, after weakness in both drove the early gilt rally.
• SONIA futures flat to +3.5.
• BoE-dated OIS little changed to 3bp more dovish on the day, showing ~4.5bp of cuts for this month’s MPC, ~26.5bp of easing through the Nov meeting and ~41bp of cuts through Dec.
• Final UK services PMI data was a little firmer than the flash estimate, with the accompanying text little changed.
• Macro/cross-market moves are set to drive things through the remainder of the session, with little of note on the UK schedule & U.S. JOLTS data due.