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

GILT SUMMARY: Gilts have rallied through the session and have managed to hold on

to most of the day's gains, while equities have lacked clear direction.

- The Sep-20 gilt future trades at 137.29, towards the top end of the day's

range and 9 ticks off the high.

- Cash yields are 2-4bp lower across the curve. Current yield levels: 2-year

-0.072%, 5-year -0.0213%, 10-year 0.1925%, 30-year 0.6871%.

- The short sterling futures strips has flattened with greens/blues up 3.0-4.0

ticks.

- Focus shifts to preliminary PMI data for June (UK, Eurozone, Germany and

France), which will be published tomorrow morning. Given the bounce back in May

and surprisingly strong retail sales print for the same month, another better

than expected PMI reading could start to shift the narrative on the shape of the

recovery.