Gilts initially sold off at the open...>

GILT SUMMARY: Gilts initially sold off at the open and have lacked direction

through the remainder of the session.

- Cash yields are 1-2bp higher across the curve with the belly marginally

underperforming. Current yield levels: 2-year -0.0659%, 5-year -0.0132%, 10-year

0.2065%, 30-year 0.6913%.

- The Sep-20 gilt future trades at 137.11, in the middle of the day's range.

- Short sterling futures are flat/0.5 ticks lower in whites/reds/greens 

- The DMO earlier sold GBP3.00bn of the 0.375% Oct-30 Gilt and GBP3.25bn of the

new 0.125% Jan-26 Gilt. The PAOF for the 0.125% Jan-26 Gilt was not taken up,

although an additional GBP628.75mn of the 0.375% Oct-30 Gilt was sold.

- Following close on the heels of better than expected preliminary June PMI data

for France and Germany, the UK prints similarly surprised higher with the

manufacturing series inching into expansionary territory.