Free Trial

Yesterday’s High In Futures Caps Rally

GILTS

Yesterday’s highs capped the rally in Gilt futures to the tick, at least for now, leaving the contract a little shy of best levels, +60 or so.

  • Technically, a bearish theme in the contract remains intact. Initial resistance comes in at 92.29 the Aug 18 high, while initial support is located at 91.19, the Aug 17 low.
  • Cash benchmarks run 6.0-7.5bp richer, with the front end leading the rally as the curve bull steepens.
  • SONIA futures run flat to 8bp richer, with the reds outperforming.
  • Local developments include softer than expected CBI trends orders data, the shallower than expected PSNB data and a Nov-33 I/L auction that saw slightly soft pricing, although cover was robust enough to prevent any post-auction weakness.
  • Cross-market impetus has been just as, if not more, important than any of those matters.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.