The U.K. stole headlines this month, with weaker than expected U.K. retail sales data and CPI inflation dropping to 7.9% YoY, marking a significant slowdown in growth. Mortgage rates fell for the first time since May giving hope to homeowners. Markets repriced - taking back 25 basis-points (bps) of the 50bps hike priced into the August meeting.

Both the FOMC and ECB delivered their 25bps hikes as expected. The consensus among market experts suggests that the Fed may introduce one more 25bps rate hike this year to moderate inflation to the Fed’s 2% target. The ECB slightly moderated earlier policy statements which said rates would be set at "sufficiently restrictive levels for as long as necessary," but dropped a reference to the rates having to be set at a level that would cut inflation quickly enough to its also 2% target. The change in statement coupled with dovish post-meeting comments from President Lagarde have market participants pricing in a less than 50% chance of a hike at the September meeting. Trading ranges in both complexes remained tight.

Long Gilt Futures continue to gain momentum with open interest (OI) at its highest level so far this year. Sales efforts began in earnest in the second half of July for a re-launch of Long Gilt Options.

Year-to-date, through June, Fixed Income futures have traded 266.1 million contracts, +11%YoY with OI up 4% YoY.