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Chunky 1Y Midcurve Put Spd Buy

Gilts are trading little changed.......>

GILT SUMMARY: Gilts are trading little changed from Monday's closing levels with
little direction seen overnight in Asia and limited UK data/speakers scheduled
for today. 10-year Gilt yield is -0.1bp at 1.301%
- Following Bank of England Governor Mark Carney's comments that were deemed
less hawkish than Vleighe's speech on Friday -- considerable risk remain, but
stimulus may need to be withdrawn in coming months if economy evolves as
expected, markets attention is turning to key Fed FOMC meeting that starts today
and concludes on Wednesday.
- Markets are also keeping an eye on the latest government infighting on Brexit
with The Times reporting that there will be a special cabinet meeting on
Thursday ahead of May's key Brexit speech on Friday in Florence. There is an
outside chance that there could be resignations with FM Boris Johnson not ruling
it out, following is comments in the Telegraph over the weekend.
- Elsewhere, the DMO tap 30-year 1.5% 2047 Gilt for Stg2.5bln, while the BoE
conducts its reverse auction in the over 15-year category for Stg1.125bln.