Gilts are trading mixed into...........>

GILT SUMMARY: Gilts are trading mixed into Monday's close with the yield curve

steepening as the long-end reverses earlier move higher but the short-end holds

onto modest gains. Volume has been low and markets thin though.

- 2-yr Gilt yield is -0.9bp at 0.748%, 5-yr -1.2bp at 1.051%, 10-yr -0.7bp at

1.303%, 30-yr +0.8bp at 1.779% & 50-yr +1.0bp at 1.611% according to tradeweb.

- Long-end of the curve reversed earlier move higher shortly after midday London

time with no catalyst seen for the move, however volumes were light and markets

subdued.

- A small bid did return to Gilts halfway through London afternoon session, but

once again, little was seen to initiate the move and sharp rise in US new home

sales failed to have a negative impact.

- With little UK or Eurozone data to look forward to in next few days attention

will remain on global trade and geo-political tensions.  DMO though taps 1.75%

2037 Gilt for Stg2.25bln tomorrow

- Short sterling strip is 0.5 to 2 ticks higher with red contracts seen leading

the move higher. Breakevens are unchanged but +15-yr swap spreads ~1bp tighter