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GILT SUMMARY

Having traded weaker earlier in the session, gilts have rallied this afternoon and now trade close to unch on the day and the curve flat overall.

  • Last yields: 2-year -0.0658%, 5-year -0.0773%, 10-year 0.1824%, 30-year 0.7274%.
  • The Dec-20 gilt future is trading toward the top end of the day's range (L:136.28 / H: 136.58) and 4 ticks off the high.
  • Citing official insiders, Bloomberg earlier reported that the UK government could decide to rewrite the contentious Internal Markets Bill in a bid to get a Brexit deal over the line. However, Downing St continues to stress that Brussels needs to fundamentally alter its position in order for negotiations to progress.
  • Looking ahead, the DMO will tomorrow offer GBP600mn of the 1.25% Nov-32 linker.
  • There are no further significant data releases until Wednesday when CPI data for August and public sector finance data for September will be published.

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