After the initial fall at start of.....>

GILT SUMMARY: After the initial fall at start of trading June Gilt future has

traded in a relatively tight 10 tick range in subdued volume as markets await

key US jobs report. Yield curve is slightly bear steepening as the long-end

takes the brunt of the selling.

- 2-yr Gilt yield is +2.0bp at 0.825%, 5-yr +1.9bp at 1.171%, 10-yr +2.4bp at

1.498%, 30-yr +3.1bp at 1.917% and 50-yr +3.5bp at 1.703%

- Gilts opened lower seen weighed by overnight news of US president Trump

signing off tariffs on steel and aluminium imports (but excluding Canada and

Mexico) and announcement that he has agreed to meet North Korean President Kim

sometime in May.

- There was little market reaction to slightly softer than expected UK

industrial/manufacturing production and a smaller trade balance deficit that

should weigh less heavily on Q4 GDP.

- Newswire headline that German considers Trump tariffs illegal lifted Gilts of

intra-day lows, however remained under pressure ahead of US data release.

- Breakevens are mixed with 5-yr 1bp wider while the 30-yr is 1bp tighter