Gilts have sold off through the........>

GILT SUMMARY: Gilts have sold off through the afternoon having started the

session on a stronger footing.

- The Jun-20 gilt future trades at 136.94 near the bottom of the day's range and

10 ticks off the low.

- Cash yields are 1-2bp higher on the day with the curve trading flat. Current

yield levels: 2-year 0.056%, 5-year 0.169%, 10-year 0.292%, 30-year 0.619%.

- The government's coronavirus testing strategy has fallen into disarray as home

testing kits ran out within two minutes.

- EU Brexit negotiator Michael Barnier has warned that bilateral talks are

headed for failure unless there is 'serious' engagement from Downing Street.

- Retail sales data published earlier in the day show a sharp contraction for

March. Given that the preliminary services PMI print for April was released

yesterday, the retail sales data provides little in the way of new information.

That said, a 4.1% Y/Y drop (ex fuel) in March when the economy was only locked

down after March 23, bodes poorly for April.