Geopolitical risk continues to ramp....>

GILT SUMMARY: Geopolitical risk continues to ramp up with the UK's Ministry of

Defence indicating that it will deploy a second warship within days to protect

British commercial oil tankers. The move follows an earlier warning from Iran

ordering foreign powers to leave the Strait of Hormuz.

- The Sep-19 gilt future trades at 130.37, up 1 ticks from Thursday's close and

17 ticks off the day's high; L-H: 130.14-130.54.

- Gilts have traded in a tight range today. Cash yields (Last / 1d chg / L..H):

2Y (0.5884% / -1.4bp / 0.5748%...0.5894%); 5Y (0.6247% / -0.6bp /

0.6105%...0.6256%); 10Y (0.8346% / +0bp / 0.8202%...0.8356%); 30Y (1.4367% /

-0.5bp / 1.4214%...1.4377%)

- Short sterling futures have broadly rallied with reds & greens outperforming:

W (broadly + 0.0/1.0 ticks higher); R (+ 1.0/1.5 ticks); G (+ 1.0/1.5 ticks); B

(+ 1.0 tick). 

- Looking ahead to next week, labour market and wage data will be published on

Tuesday, the June CPI prints will be released on Wednesday and retail sales will

be out on Thursday.