Gilts have reversed opening losses.....>

GILT SUMMARY: Gilts have reversed opening losses and are trading modestly

higher, underpinned by strong 20-yr Gilt auction and some rather dovish comments

from BoE MPC member to be Jonathan Haskel. Yield curve looks to have shifted

lower by around 1bps.

- 2-yr Gilt yield is -1.0bp at 0.730%, 5-yr -1.1bp at 1.034%, 10-yr -0.9bp at

1.287%, 30-yr -1.2bp at 1.765% & 50-yr -0.8bp at 1.605% according to tradeweb.

- Gilts opened lower, weighed by non-escalation in US/China trade tension, an

easy win for the government in the third Heathrow runway vote last night and

upcoming 20-yr Gilt supply.

- Gilts quickly reversed losses though in wake of small tail (0.1bp) and strong

demand (2.02 times) at the 20-yr Gilt re-opening auction and initial comments

from Haskel that appeared on the dovish side, or at the very least less hawkish

than Ian McCafferty, the person who he is replacing on the BoE MPC -- Might be

more slack in labour market, need closer look at wage growth and it was too

early for him to comment on future rate path. 

- Sstg strip is now 1 to 2 ticks higher having reversed opening losses