UK debt and STIR futures not fully on board with midweek bid

The simultaneous and firm FTSE open halted further upside progress in Gilts, but in truth the 10 year UK benchmark also had retreating Bunds to consider as the latter recoiled from early Eurex peaks to a fresh low of 159.65 (-5 ticks vs +19 ticks at best) in response to the bullish tone in EU equities as well, alongside further gains in peripheral debt. Looking at Liffe in more detail, Gilts remain relatively restrained within 121.56-42 parameters vs Tuesday’s 121.48 close and the Short Sterling strip is narrowly mixed with a marginal steepening bias. No real reaction to above consensus Halifax house prices, as domestic markets await more Brexit news, if not material developments and keep tabs on the US mid-term election fall-out ahead of Thursday’s FOMC.