Gilts extended their sell-off in the...>

GILT SUMMARY: Gilts extended their sell-off in the afternoon, with no real

trigger seen, but market talk of speculation on Iran nuclear deal announcement

that US President Trump may push deadline further out, was doing the rounds and

looked to have weighed on sentiment.

- Sources also reported persistent selling when NY opened. Curve is mildly

steeper as long/ultra-long-end underperforms.

- Gilt 2-yr yield is +2.5bp at 0.805%, 50-yr +4.0bp at 1.15%, 10-yr +4.4bp at

1.446%, 30-yr +4.1bp at 1.868% and 50-yr +4.3bp at 1.665% according to Tradeweb.

- Short sterling strip is 1 to 5 ticks lower with curve steeper as green/blue

contracts come under most pressure, while front-end remains anchored ahead of

BoE monetary policy decision on Thursday.

- Breakevens are 0.5bp to 1.1bp wider as sterling slips vs US Dollar, although

Brent crude drops off recent highs. Swap spreads are tighter across the board

led by 2.8bp narrowing in the 2-yr to 22.7bps.