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Yields A Touch Lower, BoE Hawk Mann Due

GILTS

Gilt futures (M4) are little changed at 97.54 (range 97.43-60).

  • The bearish technical threat remains intact in the contract, with the Feb ’22 low (97.10) providing the next target for bears.
  • Resistance comes in at the Feb ’26 high (98.53).
  • Gilt yields are ~2bp lower across the curve.
  • SONIA futures are +0.5 to -1.5 through the blues.
  • BoE-dated OIS is steady, showing 61bp of ’24 cuts.
  • Local headline flow continues to be dominated by Budget speculation, with a focus on limited room for fiscal easing.
  • Comments from BoE hawk Mann headline Wednesday’s UK calendar.
  • Elsewhere, the DMO will sell GBP4.0bn of the new 4.00% Oct-31 gilt.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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