Gilts are meandering around............>

GILT SUMMARY: Gilts are meandering around unchanged levels in very light volume

awaiting the key decision from the European Central bank at 1245BST. The curve

is modestly steeper though as the short-end has ticked higher, but the long-end

has ticked lower.

- 2-yr Gilt yield is -0.6bp at 0.501%, 5-yr -0.7bp at 0.848%, 10-yr -0.3bp at

1.407% and 30-yr +0.5bp at 1.96% according to Tradeweb.

- Gilts did not even get a boost from a larger than expected fall in UK

distributive trades survey that showed a net of -36 retailers reported a fall in

sales volumes in October compared to last month's 2-yr high of +42%, and was the

lowest pace of growth since Mar 2009 (-44%), with markets also looking ahead to

next week's BoE MPC meeting.

- Swap flows have also been extremely light with the only ones of note being a

Stg91mln+ payer in a 12Y swap and a E130mln+ payer of a 9Y swap

- Swap spreads are mixed once again with the 2-yr circa 1bp wider while the

long-end of the curve is circa 1.2bp tighter. 5-yr and 10-yr Breakevens are

1.0bp tighter and the 30-yr 0.5bp tighter.