After reversing modest gains into......>

GILT SUMMARY: After reversing modest gains into the London/NY crossover, Gilts

rallied along with German Bunds and US Treasuries in London afternoon trade,

supported by softer than expected US PPI data. Tick higher in US wholesale data

though led to Gilts falling from session highs. 10-yr sector has outperformed

the rest of the yield curve.

- 2-yr Gilt yield is -0.4bp at 0.738%, 5-yr -1.3bp at 1.035%, 10-yr -2.2bp at

1.297%, 30-yr -0.7bp at 1.757% & 50-yr -0.8bp at 1.604% according to Tradeweb.

- Earlier this morning the Sep Gilt future looked to be influenced by the

movement in Sterling as the future rose steadily as the Pound dropped against

the US Dollar and the Euro on continued no-deal Brexit concerns. Sterling

recovered though and this led to the Gilt reversing gains.

- The future hit session low shortly before the release of US data and return of

sterling weakness which underpinned the recovery in Gilts.

- Short Sterling futures are steady to 2 ticks higher, strip touch flatter as

green and blue contracts outperform whites.