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Bull Flattening

GILT SUMMARY

Gilts traded sideways for most of the day having initially opened higher, but started to rally after 1400GMT.

  • Cash yields are now 1-4bp lower on the day with the curve bull flattening. Last yields: 2-year 0.0164%, 5-year 0.324%, 10-year 0.7899%, 30-year 1.3224%.
  • The Jun 21 gilt future trades at 128.28, near the top of the day's range (L: 128.05 / H: 128.37).
  • Short sterling futures are flat in whites and 0.5-1.5 ticks in reds/greens/blues.
  • The DMO earlier sold GBP4bn of the 0.125% Mar-39 linker via syndication with books above GBP28.75bn.

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