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Gilts are trading modestly higher......>

GILT SUMMARY
GILT SUMMARY: Gilts are trading modestly higher with the 5Y and 10Y part of the
yield curve leading the way supported by risk off flows as equities sold off and
weaker than expected UK Retail Sales. Prices are off session best levels due to
disappointing 10Y Gilt reopening auction.
- 2-yr Gilt yield is -2.3bp at 0.414%, 5-yr -2.9bp at 0.734%, 10-yr -2.9bp at
1.281% and 30-yr -2.1bp at 1.856% according to Tradeweb.
- Gilts initially opened unchanged this morning, but squeezed higher due to a
sell off in equities and confusion over the situation in Catalonia in a risk-off
scenario.
- Weaker than expected retail sales pushed Dec gilt futures to fresh session
highs. Around same time two gilt block trades were seen going through. 
- Gilts pared gains though as UK 10Y reopening auction tailed heavily (0.4bp vs
0.2bp), but remained underpinned by continued Brexit concerns.
- Swap spreads in the region of 0.5bp wider while breakevens are circa 2bp
tighter. 

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