CZK: EUR/CZK Stays Near 25.0, Sentiment Deteriorates

Gilts to fresh session lows as the data-driven weakness in Bunds applies fresh weight.

• An uptick in European equities (driven by hope of U.S. tariff reprieve, as well as some stock/sector specifics), higher oil prices and hawkish Fedspeak provided cross-market pressure at the open.
• Lows of 91.06 seen so far, with bears trying to force a clean break of initial support at the Mar 13 low (91.07). The bearish technical structure remains intact.
• Fresh extension lower would target the Mar 6 low and bear trigger (90.71).
• Yields 2-3bp higher across the curve, light steepening seen.
• On the supply front, the DMO will come to market with GBP2bln of the 4.75% Oct-43 line this morning.
• Little else of note on the domestic calendar until tomorrow’s CPI & Spring Statement.
• Expect our detailed previews of those events to cross throughout today.
• As noted earlier, the FT has pointed to over GBP5bln of spending cuts in tomorrow’s Statement given the erosion of the fiscal headroom outlined in the Autumn Budget, while the OBR is set to slash its ’25 GDP growth forecast to ~1%.
• GBP STIRs see modest hawkish repricing given the weakness in the long end, with 41bp of cuts priced through year-end vs. ~43bp late yesterday. SONA futures flat to -2.0.

SFIU5 95.45/95.75/96.05c fly, sold at 9.75 in 5k.

TYK5 109.00 puts paper paid 0-15 on 3K.