Gilts have been stuck in a.............>

GILT SUMMARY: Gilts have been stuck in a relatively tight trading range, with

only limited spillover from this afternoon's weaker than expected MNI Chicago

PMI print.

- The Sep-30 gilt future trades at 137.84 (L/H: 137.73/137.98 and has lacked

direction through the session.

- Cash yields are 1-2bp lower across much of the curve, while the very long end

now trades close to unch on the day. Current yield level: 2-year -0.11%, 5-year

-0.0796%, 10-year 0.1481%, 30-year 0.6068%.

- Reuters earlier reported that BoE Chief Economist Andy Haldane has indicated

that the MPC had yet to discuss whether the Bank would sell gilts before raising

the bank rate significantly. 

- Data published this morning showed the UK economy contracting at a faster pace

than initially expected during the first quarter (-2.2% Q/Q vs -2.0% survey).

- Tomorrow will see the release of the Nationwide House Price Index and the

final manufacturing PMI print for June.