Gilts are trading mixed, curve.........>

GILT SUMMARY: Gilts are trading mixed, curve modestly flatter as short-end edges

lower while the long-end squeezes higher following strong demand at 10-yr Gilt

re-opening auction and continued weakness in Sterling. Volumes have been thin

though and markets lack direction

- 2-yr Gilt yield is +0.2bp at 0.736%, 5-yr -0.7bp at 1.046%, 10-yr -1.7bp at

1.316%, 30-yr -1.2bp at 1.755% & 50-yr -1.1bp at 1.604% according to Tradeweb.

- Sep Gilt future slipped from higher opening as markets looked ahead to 10-yr

Gilt and US Tsy supply, however recovered lost ground following strong demand at

the 10-yr Gilt auction. 

- Continued slide in Sterling against the US Dollar and the Euro then saw the

Gilt future creep higher. While the political row over Tory MP Boris Johnson

comments in a newspaper article heats up.

- Short sterling futures are steady to 2 ticks higher led by green and blue

contracts and in-turn flattening the strip slightly.

- Attention now turns to US 10-yr Tsy auction and then UK trade and flash Q2 GDP

data on Friday.