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Ending The Weaker On A Softer Note

GILT SUMMARY

Gilts have traded weaker through the session with the curve steepening slightly.

  • Cash yields are 1-2bp higher. Last yields: 2-year -0.0409%, 5-year -0.0023%, 10-year 0.2970%, 30-year 0.8463%.
  • The Mar-21 gilt future trades at 134.32, near the middle of the day's range {L: 134.16 / H: 134.54)
  • The short sterling futures strip has steepened with whites/reds down 0.5-1.0 ticks and greens/blues down 1.0-2.0 ticks.
  • The EU's chief Brexit negotiator Michel Barnier has headed to London to continue discussions, with both sides continuing to warn that stark difference remain.
  • As the UK nears the end of the national lockdown and returns to a tiered system of social restrictions, the estimated transmission rate is reported to be falling sharply.
  • Looking ahead, next week will see the release of money supply and mortgage approval data for October, the latest nationwide house price index update for November, as well as final PMI prints for November.

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