Trial now

Consolidation Mode


Maintains A Bullish Tone


Corrective Cycle Still In Play

Despite PM Theresa May receiving.......>

GILT SUMMARY: Despite PM Theresa May receiving applause and encouragement from
her European counterparts in Brussels on Thursday Gilts rallied at the European
open. The Mar-18 10Y Gilt contract is currently trading 20 ticks higher at
125.49. It is a little surprising to see the rally in Gilts as it is largely
expected that the European Commission will conclude that sufficient progress has
been made to allow talks to progress to the next stage.
- According to chatter from traders it was noted that trading volumes this
morning was light and this could possibly explain the move higher in the Gilts.
- There seemed to to be a subtle risk-off feel in the market overnight and the
European markets appear to have followed this trend in early morning trade.
- At yesterday's BOE meeting policy makers were encouraged by the progress that
had been made in Brexit negotiations and saw it as a being possibly positive for
the UK economy, however, Gilt yields have reacted negatively to these comments.
- 2-yr Gilt yield is -1.3bp at 0.437%, 5-yr -1.6bp at 0.698%, 10-yr -2.3bp at
1.152% and 30-yr -1.9bp at 1.714%.