Gilts had a very strong open,..........>

GILT SUMMARY: Gilts had a very strong open, outperforming both Bunds and

Treasuries in early trading as concerns that the UK Budget next month might not

give as much of a fiscal boost as expected circulated. Some headlines suggested

some of the stimulus measures might be delayed until the Autumn Budget.

- However, gilts have given up their gains with 10y yields now little changed

relative to yesterday's close. This still sees gilts outperform Bunds where

yields are a bit higher on the day. Overall, coronavirus headlines remain the

overarching market driver.

- 2y yields down -0.5bp today at 0.377%

- 5y yields down -0.5bp today at 0.400%

- 10y yields up 0.1bp today at 0.519%

- 30y yields up 0.7bp today at 0.967%

- 2s10s up 0.6bp today at 14.2bp

- 10s30s up 0.6bp today at 44.8bp