- Gilts have been relatively...........>

GILT SUMMARY: - Gilts have been relatively directionless this morning, while the

curve overall is marginally flatter.

- The 2-year gilt trades at 0.875% and has held within a 0.858/0.876% range

while the 10-year trades at 1.684% and has held within a 1.668/1.695% range.

- The 2s10s spread has narrowed to 79.4bps down from 81.5bps.

- The Dec18 Gilt future trades at 119.97 and has held within a tight range.

- Alongside the global equity sell off, short term interest rate futures have

rallied. The short sterling futures strip is up 2.0-4.0 ticks.

- Inflation breakevens are broadly stable.

- The Bank of England quarterly credit survey indicated that lenders expect the

largest drop in availability of secured lending to households since Q408 over

the next three months.