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

GILT SUMMARY: Gilts are trading little changed ahead of NY open, having reversed

earlier soft opening as UK September inflation comes in-line with expectations

and BoE's David Ramsden and Silvana Tenreyro appear in front of Treasury Select

Committee.

- 2-yr Gilt yield is -0.5bp at 0.448%, 5-yr -0.5bp 0.782%, 10-yr -0.2bp 1.336%

and 30-yr -0.1bp at 1.893%.

- UK inflation for September came in at 3.0% y/y, a 5-year high, in-line with

MNI median forecast and up from 2.9% y/y in Aug. This was above BOE's staff

forecast of 2.8% y/y in its Aug QIR. While Core remained steady at 2.7% y/y as

expected.

- BoE Ramsden sounded dovish as he answered questions from the TSC, saying that

he was not in the majority who thought interest rates should rise in 'coming

months'. However, BoE Tenreyro when asked the same question said she was with

the majority of the MPC.

- Swap spreads are modestly tighter led by the long-end, while breakevens are in

the region of 1bp tighter.