Bull Flattening

Gilts have rallied through the day and the curve has bull flattened.

• Cash yields are now 1-4bp lower on the day with the 2s30s spread 2bp narrower. Last yields: 2-year -0.0453%, 5-year -0.0058%, 10-year 0.2905%, 30-year 0.8454%.
• The Dec-20 gilt future trades at 135.33, 2 ticks off the day's high.
• Short sterling futures are broadly up 0.5-1.5 ticks.
• The government earlier announced which areas in the UK will be subject to the tightest social restrictions after the national lockdown ends. The majority of the country will be in either Tier 2 or Tier 3 (the latter being the strictest). While London will be in Tier 2, much of the north of England and a large chunk of the south east will be in Tier 3.
• Another senior Irish politician - this time, Europe Minister Thomas Byrne - has again warned of the difficulty in getting a Brexit deal agreed with talks at a 'critical juncture'.
• The results of the Oxford AstraZeneca trial are now uncertain after Oxford University admitted an error in the published results.