Gilts have rallied through the.........>

GILT SUMMARY: Gilts have rallied through the session with the curve bull

flattening. Yields have pushed lower alongside fresh equity gains and another

uptick for oil.

- The Jun-20 gilt future trades at 138.42, 4 ticks off the day's high.

- Gilt cash yields are broadly 3-5bp lower. Current yield levels: 2-year

-0.061%, 5-year -0.006%, 10-year 0.176%, 30-year 0.565%.

- Flash composite, services and manufacturing data for May were published

earlier this morning and show a rebound in activity which exceeded expectations.

At the same, the CBI trends survey showed a further deterioration in the order

book for May. 

- Tomorrow will see the release of the GfK consumer confidence data for May, as

well as retail sales and public finance data for April.

- Looking ahead, the DMO will auction GBP3.75bn of the 0.125% Jan-23 gilt and

GBP1.50bn of the 1.75% Jul-57 gilt on 27 May.