GILTS: Little Impact From Soft GDP

{GB} GILTS: Gilts are little changed across the curve, with no lasting impact from the soft (but noisy) UK GDP data.

• The space drew limited support from a downtick in equities and has faded from session highs.
• Gilt futures +8 at 93.73, with bulls unable to close yesterday’s opening gap lower as of yet.
• Still, bulls remain in technical control, initial support and resistance located at 93.14 & 93.98, respectively.
• Yields within 0.5bp of yesterday’s closing levels.
• SONIA futures flat, market still pricing just over 80% odds of a cut through for the December MPC decision. SONIA-implied terminal rate pricing at ~3.30%.
• BoE MPC hawk Greene will speak on central bank independence today (12:00 London). The topic of the panel that she will speak on and the fact that she has already reaffirmed her hawkish views earlier in the week mean that we are unlikely to get a meaningful market reaction.
• A reminder that we currently expect all 4 dovish dissenters on the MPC to vote for a cut in December. At this stage, we expect Governor Bailey to join them (assuming we get in line CPI readings in the interim and this week’s soft labour market data isn’t revised away).