- Gilts have sold off since............>

GILT SUMMARY: - Gilts have sold off since mid-morning and the very long-end of

the curve has flattened slightly. The 2-year benchmark yield trades at 0.770% up

from a morning low of 0.732%, while the 10-year trades at 1.321% up from 1.275%.

- The 2s10s spread is broadly flat while 2s30s has traded down to 104.7bps from

106.1bps.

- There has been a marginal increase in longer-term inflation breakeven rates,

with the 10-year benchmark inching up to 3.209% from 3.187%.

- Cable remains under pressure and currently trades at 1.2641 off a high of

1.2698

- The short sterling futures strip has steepened with greens/blues down 5.5-6.0

ticks.

- The data calendar is now clear until December 28 when UK housing loan data

will be published.