Gils are trading mixed having..........>

GILT SUMMARY: Gils are trading mixed having recovered majority of early morning

risk-on sentiment induced sell-off as UK labour report disappoints slightly as

pace of increase in earnings fall for first time since Sep 2017. 2s/10s spreads

is showing the largest movement in the curve steepening by 0.9bps.

- 2-yr Gilt yield is -0.1bp at 0.715%, 5-yr -0.2bp at 1.005%, 10-yr +0.5bp at

1.269%, 30-yr +0.3bp at 1.736% & 50-yr +0.1bp at 1.586% according to Tradeweb.

- UK unemployment dropped more than expected to 4.0% from 4.2% and hitting the

lowest level since Feb 1975, however, average weekly earnings slipped to 2.4%

from 2.5% and employment only rose 42k in the 3-months to June, down sharply

from the 137k reported between March and May.

- Markets also passing around a Times article that says the European Research

Group, headed by Brexiteer Jacob Rees-Mogg, are to publish their own "positive"

blueprint for a hard Brexit. It is expected to have the backing of between 60 to

80 Tory MPs and could be pressure on PM May when it is released next month.

- Short sterling futures are steady to 2 ticks lower with red contracts

currently underperforming the rest of the strip.