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Gilts Go Bid

GILT SUMMARY

Gilts went bid alongside the drop in equities as tech stocks came under pressure.

  • Cash yields are now 3-5bp lower on the day with the curve bull flattening.
  • Last yields: 2-year 0.0414%, 5-year 0.3465%, 10-year 0.7925%, 30-year 1.2916%.
  • The Jun 21 gilt future has traded up to 128.18, 9 ticks off the day's low.
  • The short sterling futures strip has flattened with whites/reds flat/3.5 ticks higher and greens/blues 3.5/4.5 ticks higher.
  • Data published earlier in the session showed a sharp surge in mortgage lending for March with borrowers benefiting from the stamp duty holiday.
  • The DMO will come to market tomorrow to offer GBP2.75bn of the 0.25% Jul-31 Gilt and GBP2bn of the 0.875% Jan-46 Gilt.

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