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Drifting Lower

GILT SUMMARY

Gilts have drifted lower through the session, alongside broad equity gains.

  • Cash yields are 1-2bp higher on the day with the curve trading close to flat. Last yields: 2-year -0.1024%, 5-year -0.0239%, 10-year 0.3366%, 30-year 0.9115%.
  • The Mar 21 gilt future trades at 133.88, 14 ticks off the day's low.
  • Short sterling futures are broadly 0.5-1.5 ticks lower in whites/reds/greens/blues
  • The final estimate of the January manufacturing PMI came in above the initial reading (54.1 vs 52.9), although delivery times have increased sharply.
  • Focus this week is on the BoE meeting on Thursday. Although no material change in monetary policy is expected, markets will be paying attention to the Bank's published review into negative interest rates.

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