Gilts are trading a little weaker......>

GILT SUMMARY: Gilts are trading a little weaker but off lows, in a fairly choppy

but largely rangebound BOE Super Thursday.

- The Dec 18 Gilt future is down 20 ticks at 122.21, having traded in a range of

121.87 (possibly a bad Bloomberg tick at midday alongside BOE decision)->122.31.

- The 2-Yr yield is up 2.3bps at 0.774%, 5-Yr is up 2bps at 1.047%, 10-Yr is up

2.1bps at 1.458%, and 30-Yr is up 0.3bps at 1.867%.

- No change in BOE policy of course.

- The November IR was more hawkish than its August predecessor (as we expected

in our POV), but largely dull, with the BoE's main message that we should wait

to see the Brexit deal before making any big decisions.

- Bank Rate seen rising from its current 0.75% to 1.0% in the fourth quarter of

2019, 1.2% in Q4 2020 and 1.4% in Q4 2021: markedly higher than the August one,

which showed Bank Rate peaking at 1.1% in 2021.

- Most notable flow has been Short-Sterling Dec18 99.125 puts sold in 60+k on

the day (vs 99.115 underlying).