Gilts are trading mixed in light.......>

GILT SUMMARY: Gilts are trading mixed in light volumes heading into the NY open

with little direction seen in the London morning session to direct markets. What

data there has been has largely been ignored. The yield curve is flattening as

2-yr to 10-yr sector comes under renewed selling pressure.

- 2-yr Gilt yield is +0.7bp at 0.767%, 5-yr +0.7bp at 1.026%, 10-yr +1.1bp at

1.278%, 30-yr +0.2bp at 1.714% & 50-yr -0.6bp at 1.545% according to Tradeweb.

- Sep Gilt future has traded in a relatively tight 19 tick range so far

Wednesday, initially supported by squeeze higher in US Treasuries overnight, but

then the 2-yr to 10-yr sector came under fresh selling pressure ahead of NY

open.

- UK mortgage approvals rose to a 9-month high in June providing some evidence

that housing market activity is improving. While UK retailers saw a

weather-induced boost in retail sales volume growth in July, although supplier

orders were down sharply on the month, a CBI survey showed.

- Mar20 to Mar22 Sstg contracts are 1 tick lower but in thin volume, while the

Sep8 99.125/99.25/99.375 call fly has been bought in 15k this morning.