Gilts currently holding onto opening...>

GILT SUMMARY: Gilts currently holding onto opening gains with the yield curve

bull flattening as the long-end seen supported by flight-to-quality bid in wake

of latest terrorist attack and US political concerns.

- 2-yr Gilt yield is -0.5bp at 0.225%, 5-yr -0.6bp at 0.499%, 10-yr -1.4bp at

1.080% and 30-yr -1.1bp at 1.748% according to Tradeweb.

- Gilts opened Friday modestly higher, as markets traded with a mild risk-off

tone following terrorist attack in Barcelona, continued concerns over the

ability of the Trump administration and further dovish comments from Fed

officials.

- Saying that though, Gilts did temporarily pare some of their opening gains as

traders looked to take some profits, but with limited new data from UK &

Eurozone, prices ticked higher once more, taking cue from large 2-yr/5-yr curve

flattener trade in German Bonds. Prices once gain dropped from highs but in very

light volume.

- Swap spreads are mixed with 2-yr 2bp tighter while 10-yr is 1bp wider. While

10-yr and 30-yr breakevens are circa 1bp tighter.