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GILT SUMMARY

Having steadily sold off through the morning, gilts have clawed back losses and now trade close to unch on the day.

  • Last yields: 2-year -0.0384%, 5-year -0.0315%, 10-year 0.2837%, 30-year 0.8507%.
  • The Dec-20 gilt future trades at 135.57, similarly in line with yesterday's close.
  • Short sterling futures are broadly 0.5-1.0 ticks lower on the day.
  • Flash PMI data for October, published this morning, showed a slight deterioration in momentum, but indicated that the services and manufacturing sectors were still firmly rooted in expansion mode. Retail sales volumes surprised higher in September with ex Auto series increasing 1.6% Y/Y vs 0.5% survey.
  • Reuters reports that France is preparing a compromise on access to UK fishing waters in a bid to help the EU secure a Brexit deal.
  • The DMO sold GBP1.75bn of 1-/3-/6-month T-Bills.

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