Gilts have rallied in line with USTs this.....>

GILTS: Gilts have rallied in line with USTs this morning with new highs being

made after the slight 0.2 point miss in the UK PMI.

- Gilts have been helped by headlines this morning that the BoE has said it will

continue to monitor developments in the coronavirus and "will ensure with

partners all necessary steps are taken".

- 10y gilt yields are at their lowest level since an intraday spike lower to

0.339% in September at the height of Brexit concerns (the current record low

yield). On the day at time of writing yields are down 5.3bp at 0.389% and if we

were to close at this level it would be the lowest ever close.

- 2y gilt yields are lower than Sep 2019 levels, down 6.6bp on the day at

0.244%, but still some way above the lows seen through 2016-17.