Gilts have rallied since 1400GMT.......>

GILT SUMMARY: Gilts have rallied since 1400GMT alongside US TSYs and core EGBs

with the market narrative building around mounting concerns over global economic

growth.

- Yields are 1-2.5bps lower across the curve since yesterday's close with the

very long-end marginally outperforming on the day. The 30-year benchmark yield

trades at 1.672% down from a high of 1.701%.

- The gilt curve has flattened slightly with the 2s30s spread narrowing to

96.8bps from 98.5bps.

- The Mar-19 gilt future trades at 124.29 towards the top end of the day's

range.

- Having held steady for most of the day, inflation breakeven rates took a leg

lower this afternoon with the 5-year benchmark edging down to 3.144% from a high

of 3.160%.

- The short sterling futures strip is 1.5-2.5 ticks higher.