Gilts have quietly and steadily........>

GILT SUMMARY: Gilts have quietly and steadily reversed earlier opening lower

move, underpinned by possible unwinding of some hawkish risk to Bank of England

monetary policy decision and MPC minutes.

- 2-yr Gilt yield is -0.7bp at 0.285%, 5-yr -0.3bp at 0.555%, 10-yr -0.4bp at

1.144% and 30-yr -0.8bp at 1.796% according to Tradeweb.

- Gilts opened lower, with yield seen 1.3bp higher a ross the curve, seen

weighed ahead of Bank of England monetary policy decision and release of MPC

minutes, with markets increasingly pricing in a hawkish meeting and risk of a

6-3 vote for unchanged rates.

- There also appeared to be a 2-/10-year swap steepener trade go through in at

least 100k DV01

- However Gilts recovered from session low as the markets appeared to be slowly

unwinding this risk ahead of BoE decision at 1100GMT.

- There was some decent early flow in front-end of the short sterling strip with

buying in Sep7 offset by selling in both Dec7 and Mar8 contracts.