UK debt and STIR contracts consolidating after cabinet reshuffle fallout

After a relatively sedate start to Friday’s Liffe session, Gilts and Short Sterling futures knee-jerked amidst comments from BoE Governor Carney that crossed the wires just ahead of the open, but have subsequently settled down again above yesterday’s lows and settlement prices. Some calm after the unexpected change of Chancellor storm was anticipated and the 10 year benchmark is currently hovering around the middle of an early 133.36-57 range compared to the 133.44 close and prior day’s 133.22 base, while the 3 month strip is flat to 1 tick above parity within -0.5/+1.5 tick parameters. For the record, nothing scheduled on today’s domestic slate, but markets will be wary of any breaking news from PM Johnson’s cabinet meeting after the unforeseen surprises on Thursday, while the US agenda comprises potentially key data.