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Bull Steepening

GILT SUMMARY

Following a weak start, gilts have gradually edge higher through the session and have returned to yesterday's closing levels. The curve has bull steepened, with the 2s30s spread is 2bp wider.

  • Last yields : 2-year 0.059%, 5-year 0.3674%, 10-year 0.8480%, 30-year 1.3963%.
  • The Jun 21 gilt future trades at 127.67, near the top of the day's range (L: 127.38 / H: 127.73)
  • Short sterling futures are broadly flat.
  • The CBI Total Trends Orders print came in higher than expected for May (17 vs 0 consensus).
  • Focus tomorrow will be on the preliminary PMI data for May and retail sales for April.

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