EMISSIONS: EU Parliament Backs Clean Industrial Deal

• +5,000 FVM5 107-23.25, post time offer at 1118:38ET, DV01 $210,000.
• The 5Y contract trades 107-23 last (+1.75).

MNI interviews Wrightson ICAP chief economist on sidelines of Atlanta Fed conference -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

The sell off in gilts has stalled as Tsys recover from session lows, leaving gilt futures within the range observed over Friday & Monday, last -34 at 91.16.

• The range extremes witnessed over the prior couple of sessions continue to present initial support and resistance (90.86/92.23).
• Flattening impulse generated by BoE chief economist Pill fades, yields now ~3bp higher across the curve.
• 2s registered fresh May highs at 4.066% before gilts recovered from lows, next upside level of interest seen at the April 10 high (4.078%).
• 5s saw a similar pattern develop but yields further out the curve respected highs seen in recent sessions.
• 5s30s is set to respect the April 14 closing low (~123bp) mentioned earlier, back above 125bp..
• BoE-dated OIS stabilises around pricing 40bp of cuts through year-end, with ~60% odds of a 25bp cut priced through August and just over 80% odds priced through September, before ~33bp of cumulative easing is priced through November.
• SONIA futures remain under pressure after Pill’s comments were digested/wider core global FI moves factored in, with some of the whites and reds through last week’s lows. Contract last 0.25-5.0 lower across the strip.
• Terminal rate pricing for the current cutting cycle (proxied by SFIU6 at present) last prints at 3.68% after testing last week’s hawkish extreme of 3.685% earlier in the session.
• UK CPI data is due tomorrow morning, our preview is here.