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Following the increase in BoE hawkish.........>

GILTS
GILTS: Following the increase in BoE hawkish rhetoric Thursday Citi recommend a
2s/10s Gilt flattener trade at 86bp with target at 70bp and stop at 94bp.
- Citi say that the 2-yr yield is only 12bp above current Bank Rate and
therefore "plenty of scope for a further sell-off", while further out "market
may soon start tp price policy error".
- "The market may price policy error if the MPC hike. Risk - hike prospects
fade, but international drivers take long-end gilt yields higher", Citi add.

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