Gilts have chopped around in a tight...>

GILT SUMMARY: Gilts have chopped around in a tight range Monday with a lack of

macroeconomic data and any newswire headlines seen to drive market direction,

and look set to close little changed on the day.

- 2-yr Gilt yield is +0.4bp at 0.839%, 5-yr +0.2bp at 1.175%, 10-yr +0.2bp at

1.501%, 30-yr +0.4bp at 1.927% & 50-yr +1.0bp at 1.72% respectively, according

to tradeweb.

- June Gilt future hit session low just before BoE APF reinvestment purchases in

the 3-yr/7-yr sector, but managed to bounce higher despite large offer ratio. 

- The Main events for Gilts for the week will be the Spring Budget by Chancellor

Hammond on Tuesday and the release of DMO Gilt remit for fiscal year 2018/19,

the start of the BoE APF re-investment programme and the launch of a new 10-yr

Gilt for Stg2.5bln on Thursday.

- At the Spring Budget most analysts see borrowing for FY 2017/18 to come in

well below OBR forecasts and for the remit to show a fall in Gilt issuance.

- Breakevens are steady to 1.1bp wider led by the 30-yr area, while swaps

spreads are little changed.