Gilts and Short Sterling futures much more compliant on the downside

Having lagged and faded bullish moves in core counterparts early on Wednesday, UK debt and STIR contracts appear less resilient or reluctant to trade lower on their return to Liffe today, and not simply because that path is often least resistant. Indeed, the 10 year benchmark just extended losses to 34 ticks at 121.15 vs 24 ticks initially and 19 ticks at one stage, while Bunds have been 31 ticks adrift at 159.19 vs ‘only’ -14 ticks around 8GMT. Returning to Liffe, the 3 month strip is also on the backfoot and underperforming peers between 0.5-4 ticks below parity as the clock ticks down to Brexit and negotiations intensify to try and thrash out a deal (within the Government and UK-EU wise).