HALISTER1: Gilts Opening Calls: Futures Seen Opening Lower, Near 126.05/08

Gilts Opening Calls: Futures Seen Opening Lower, Near 126.05/08

(Bloomberg) -- Gilt futures called to open lower, tracking bund and Treasury dip from the European open.
  • Supply ahead this week with U.K. to sell 1.5% 07/2047 for GBP2b on March 22, equivalent to 39k gilt futures, or GBP4.4m/bp in risk
  • Mixed views on GBP rates; Deutsche Bank suggests maintaining 1y1y/3y1y Sonia steepener, given lack of risk premium considering inflation pressure
    • Citigroup suggests hawkish episodes from BOE should be faded as actual risk of a policy error is far too great ahead of potential cliff-edge risk, stay long 10y gilt: MORE
  • Gilt 10Y futures called to open at 126.05 (-0.20) RX ref: 159.74
    • Called to open at 126.08 (-0.17) based on TY ref: 123.79
  • NOTE: Opening call levels are derived from prices of equivalent bund futures since 7pm CET previous trading day; changes vs gilt closing prices at 7pm CET

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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