Gilts continued to be one of the.......>

GILT SUMMARY: Gilts continued to be one of the outperformers in core fixed

income space, with 10y yields hitting another cycle low of 0.658%.

- There have not really been many UK specific drivers this morning in what has

been a fairly quiet session so far with the US out for 4th July celebrations.

- The main story in the Tory party leadership race has surrounded Jeremy Hunt's

comments that he could re-legalise fox hunting if he becomes the next Prime

Minister. Elsewhere, newspaper reports have suggested that former Chancellor of

the Exchequer and current Editor of the Evening Standard, George Osborne, is

interesting in rivalling Mario Draghi to replace Christine Lagarde as MD of the

IMF.

- Gilt futures are up 0.36 today at 132.39.

- 2y yields down -1.6bp today at 0.477%

- 5y yields down -2.5bp today at 0.465%

- 10y yields down -3.3bp today at 0.657%

- 30y yields down -2.1bp today at 1.294%