Gilts have moved lower in line with....>

GILT SUMMARY: Gilts have moved lower in line with the rally in risk today but

have outperformed both Treasuries and Bunds as expectations of easing of UK

monetary policy remains at the fore.

- Bank of England Chief Economist Andy Haldane made another appearance today but

said little new. He reiterated that the Bank was reviewing negative rates but

that there were drawbacks involved including squeezing bank net interest

margins. He also said that there could still be a V shaped recovery but with a

lopsided V with employment potentially not recovering to pre-Covid levels until

2023.

- DMO announced details of Gilt sales on June 2; perhaps a little on the low

side of expectations, at GBP3.25bln for new Jan-26 and GBP3.0bln for Oct-30. Not

much reaction to the announcement though.

- Jun Gilt futures (G) down 45 ticks at 138.06 (L: 137.96 / H: 138.44)

- The 2-Yr yield is up 2.6bps at -0.025%, 5-Yr is up 3.1bps at 0.013%, 10-Yr is

up 3.4bps at 0.208%, and 30-Yr is up 4.6bps at 0.631%.