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

GILT SUMMARY: Gilts are trading little changed heading into NY session having
pared earlier weakness despite in-line UK labour data and larger than expected
size of a new 2071 Gilt.
- 2-yr Gilt yield is -0.3bp at 0.811%, 5-yr +0.2bp at 1.17%, 10-yr +0.2bp at
1.481%, 30-yr -0.3bp at 1.894% and 50-yr -0.3bp at 1.696% according to Tradeweb.
- Gilts opened on the back foot, weighed by US 10-yr Tsy yield braking above 3%
again and as market prepared themselves for UK labour data and launch of a new
syndicated 2071 Gilt.
- UK data came in-line with expectations with unemployment rate remaining at
4.2% and average weekly earnings ex bonus ticking higher to 2.9%. The employment
change though showed a larger than expected positive rise in Q1 and led to
productivity turning negative. In all the data did little to change markets view
on current path of interest rates and Gilts squeezed higher, helped by strong
demand at syndicated 2071 Gilt.
- Gilts did see some temporary weakness following announcement that size for the
new Gilt would be Stg6bln, but quickly recovered.

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