UK debt and STIR futures straddling Tuesday’s Liffe settlement levels

Gilts have overcome an early wobble to probe the upside in line with Bunds, and recently topped out at 120.63, +16 ticks vs -1 tick at the low, but trade remains rangebound overall in typical pre-Fed fashion. Indeed, the 10 year German benchmark is strictly observing tech boundaries, for now at least, with market contacts noting a bounce just ahead of near term support at 157.87 (vs 157.89 marginal new intraday base) and the peak so far well within nearest major resistance around 158.21. Back to Liffe, some minor underperformance at the short end with 3 month contracts flat to 1 tick adrift after trying to nudge above parity with little conviction, but again in line with the Euribor strip and broader curve flattening into the FOMC. Ahead, BBA mortgage apps and the CBI retail survey following what now seems almost certain to have been an erroneous Nationwide hpi release.