Gilts have started Thursday trading....>

GILT SUMMARY: Gilts have started Thursday trading on a higher footing, supported

by release of FOMC minutes last night that highlighted concerns over lower

inflation and when the next interest rate hike should be, but agreement on

balance sheet reduction announcement. 

- Sep Gilt though is currently seen capped at around yesterday's high of 127.76,

with markets seen looking ahead to UK July retail sales for next directional

move, and is actually started to drift lower.

- Markets are anticipating a slowing in retail sales for July after a stronger

than expected 0.6% m/m rise in June, with MNI median forecasting a 0.3% m/m rise

in total sales. Risks seen to the downside though due to poor weather.

- 10-yr Gilt yield continues to trade comfortably below its 100-DMA of 1.12% at

1.089% which is 1.5bp lower than Wednesday closing level.

- There has been some light selling in the Sep/Dec Gilt roll so far this morning

at 1.00 with a total of around 7.5k sold on screens.