Gilts have progressively weakened......>

GILT SUMMARY: Gilts have progressively weakened through the day with the

announcement of an increase in UST supply adding to the downside pressure on UK

government bonds. Nonetheless, price action is relatively contained, with gilts

outperforming EGBs on a relative basis.

- The Jun-20 gilt future trades at 137.75, near the middle of the day's range.

- Cash yields are 1-3bp higher with the belly of the curve slightly

underperforming. Current yield levels: 2-year -0.004%, 5-year 0.077%, 10-year

0.229%, 30-year 0.564%.

- The short sterling futures strip has steepened with whites/reds up 1.0-1.5

ticks and blues down 0.5-1.5 ticks.

- Marking his return to PMQs today, PM Boris Johnson indicated that lockdown

measures will begin to ease on Monday, with an official announcement of the

government's exit strategy scheduled for this Sunday.