Gilts are trading higher and at or.....>

GILT SUMMARY: Gilts are trading higher and at or near session highs supported by

flight-to-quality bid, BoE Carney comments on Brexit and soft US jobs report.

The 5-yr to 10-yr sector is outperforming the rest of the curve.

- 2-yr Gilt yield is -4.0bp at 0.755%, 5-yr -4.6bp at 1.062%, 10-yr -4.9bp at

1.333%, 30-yr -3.2bp at 1.778% & 50-yr -2.0bp at 1.635% according to Tradeweb.

- In thee afternoon the Sep Gilt future gradually pared gains in wake of China's

announcement that it will increase its reserve requirement on FX forwards which

led to US dollar falling sharply and the Yuan rallying.

- Gilts Markets recovered from lows though in preparation for release of US jobs

report and then squeezed higher after soft 157k non-farm payroll and steady

earnings data.

- Announcement from China that they will retaliate against the US with $60bln of

tariffs then supported further bid in Gilts.

- Short sterling futures are higher, strip flatter as blue and green contracts

rise by 5 to 6 ticks, while whites are 2 ticks up. Little data from the UK next

week, however DMO taps is 10-yr Gilt for Stg2.5bln on Wednesday.