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Gilts have opened lower taking cue from.......>

GILTS
GILTS: Gilts have opened lower taking cue from soft US Treasuries and German
Bunds. Supply is also seen as weighing as UK tap 10-yr Gilt and German a 30-yr
Buxl. Curve is pivoting around the 10-yr sector as 10-yr trades at 1.474%, 3.5bp
higher on the day according to Tradeweb.
- Short sterling strip has also sold off this morning with curve steepening as
blue contracts fall 3 ticks despite BRC showing retail sales collapsing in
April.
- April like-for-like sales shrank 4.2% on the year, the worst outturn since
April 2005, compared to the 5.6% expansion in sales values in the same month of
2017. This years early Easter was a likely contributor but figures continued to
signal depressed discretionary spending appetites across UK households.

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