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Gilts traded sideways for most of the day, having initially opened stronger, and have rallied sharply since the early afternoon following the BoE's buyback operation.

  • Gilt cash yields are 2-7bp lower on the day with the curve 4-5bp lower. Last yields: 2-year 0.0672%, 5-year 0.3247%, 10-year 0.7140%, 30-year 1.2706%.
  • The Jun-21 gilt future trades at 128.1, 17 ticks off the day's high.
  • The DMO earlier sold GBP3.00bn of the 0.375% Oct-26 Gilt and GBP1.25bn of the 0.50% Oct-61 Gilt. GBP147.351mn of the former and GBP312.499mn of the latter were taken up through the PAOF.
  • The BoE purchased GBP1.48bn of long-dated gilts with offer-to-cover of 1.95x.
  • The focus tomorrow will be on the UK budget, particularly given the slew of communication from Chancellor of the Exchequer Rishi Sunak on the need to restore the healthy of the public finances after the pandemic. MNI earlier published a UK budget preview, which is available online and by email.