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Gilts are trading steady to modestly...>

GILT SUMMARY
GILT SUMMARY: Gilts are trading steady to modestly higher with the short-end
seen anchored by upcoming event risks, while 10-yr and ultra-long-end outperform
on light bid. 
- 2-yr gilt yield is +0.1bp at 0.762%, 5-yr +0.1bp at 1.087%, 10-yr -1.4bp at
1.377%, 30-yr -0.5bp at 1.808% and 50-yr -1.2bp at 1.602% according to Tradeweb.
- There has been a dearth of UK data or official speakers today and with UK
closed for early May-Day holiday on Monday, Gilts will be reacting to outside
influences today. Risk events pick up next week though with BoE MPC monetary
policy decision and release of last inflation report.
- Markets do not expect a rate hike next week any more, following run of poor UK
data and comments from BoE Governor Carney. But analysts views on future policy
are mixed with some seeing BoE being on hold for next 2-yrs, while others see 1
hike this year and between 1 and 2 in 2019
- Short sterling strip is mixed but showing little direction so far following
strong rally yesterday. Breakevens are mixed with 5-yr +1.2bp.

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