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Firming Into End-Week

GILT SUMMARY

Having opened stronger, gilts subsequently traded sideways through the session. The curve has flattened slightly on the back of longer end yields inching lower.

  • Last yields: 2-year 0.0707%, 5-year 0.3861%, 10-year 0.8323%, 30-year 1.3360%.
  • The Jun 21 gilt future trades at 127.76, near the middle of the day's range (L: 127.63 / H: 127.86).
  • Short sterling futures are broadly flat/0.5 ticks lower in whites/reds/greens/blues.
  • The Nationwide House Price index update showed an acceleration in UK house price growth in April (7.1% Y/Y vs 5.0% expected).
  • Focus next week will be on the Bank of England meeting and particularly any communication around possible tapering as the economic recovery gains momentum.

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