Gilts have traded sideways this........>

GILT SUMMARY: Gilts have traded sideways this afternoon following the dovish

comments from Michael Saunders and December CPI miss which underpinned the

morning rally. 

- There will now be a short breather on data releases until Friday when December

retail sales will be published. 

- The Mar-20 gilt future trades at 133.3, up 89 ticks from Tuesday's close and

21 ticks off the day's high; L-H: 132.58-133.51.

- Gilt yields are 4-8bps lower on the day. Cash yields (Last / 1d chg / L..H):

2Y (0.4446% / -4.4bp / 0.4294%...0.4532%); 5Y (0.4268% / -7.7bp /

0.411%...0.4352%); 10Y (0.6428% / -7.6bp / 0.6264%...0.6501%); 30Y (1.1618% /

-6.4bp / 1.1473%...1.168%).

- The curve has bull flattened: 2s10s (19.2bp / -3.2bp / 18.5bp..19.5bp); 2s30s

(71.1bp / -2bp / 70.6bp..72bp).

- The short sterling futures strip has flattened: W (+ 5.0/6.5 ticks); R (+

6.5/7.0 ticks); G (+ 7.0/7.5 ticks); B (+ 7.5/8.0 ticks).