Couple of things to watch out for today in the...>

UK: Couple of things to watch out for today in the UK.

- At midday BST the BOE will announce purchases for next week's QE operations.

We look for another GBP13.5bln of gilt purchases next week. The new GBP180bln

gilt remit announced yesterday with larger auctions does not kick in until the

following week and next week sees only 3 conventional auctions (with 1

additional linker auction). So weekly conventional supply will be the lowest

since the additional April issuance was announced.

- In terms of T-bills, GBP8.0bln will be on offer today with auction results

just after 11:00BST. This is the same amount as last week and we note that in

yesterday's gilt remit announcement the DMO stated that there was currently no

expectation to increase the stock of T-bills this year - all of the financing is

expected to be through gilts.

- Our technical analyst still sees a bullish near-term outlook for gilts. He

cites 137.19 as the next resistance level for the June futures contract with the

March 30 high at 137.31 a more important bull trigger. A breach of this level

which would open up a move towards 138.00/15 (round number/Mar 12 high).