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Gilts are rallying to fresh............>

GILT SUMMARY
GILT SUMMARY: Gilts are rallying to fresh intra-day highs, underpinned by sharp
fall in Nasdaq futures in last hour of trade. The 10-yr sector is leading the
move higher and therefore pivoting the yield curve, 2s/10s is 0.9bp flatter and
10s/30s 0.4bp steeper.
- 2-yr Gilt yield is -1.5bp at 0.701%, 5-yr -1.9bp at 0.99%, 10-yr -2.6bp at
1.241%, 30-yr -2.0bp at 1.713% & 50-yr -1.8bp at 1.562% according to Tradeweb.
- Earlier Sep gilt future opened little changed as overnight risk-off sentiment
was unwound as Turkish Lira rallied around 7% just before UK markets opened. 
- Gilts added to marginal gains when July inflation numbers crossed the wires as
headline number came in-line with expectations at 2.5% y/y and dismissing the
rising input and output costs. The future then traded sideways until sudden
weakness in equities led to further risk-off bids in bonds.
- Short sterling futures are now steady to 3 ticks higher led by rally in green
and blue contracts. UK breakevens have tightened between 1.5 and 2bps following
UK CPI data, while swap spreads are touch wider.

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