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Gilts have opened a smidgeon lower.....>

GILT SUMMARY
GILT SUMMARY: Gilts have opened a smidgeon lower this morning, responding to the
strength in global (mainly US) equity markets. Currently, the 10Y Gilt yield is
1bp higher at 1.45%, with very similar changes across the curve.
- The equity movement, which is headlined by a 3.3% rise in the Nasdaq is built
upon the premise that the threat of a global trade war is lessening. There have
been reports of progress in Chinese-US discussions.
- Today, the DMO sells GBP600mln of Gilt linker 0.125% 2056 at 1030BST. Very
high maturity breakevens are at their lowest since last August, helped by an
appreciation of sterling and heightened speculation of the BoE rate hike in May.
- At 1445BST, the Bank of England is buying 15y+ Gilts for GBP1.22bln. There are
no economic data releases today in the UK. 

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