Gilts look set to close Friday.........>

GILT SUMMARY: Gilts look set to close Friday lower, pressured by higher US Jobs,

however 10-yr is outperforming both Bunds (0.5bp) and US Tsys (3.5bps),

underpinned by Thursday's BoE monetary policy decision.

- 2-yr Gilt yield is +1.6bp at 0.242%, 5-yr +1.3bp at 0.549%, 10-yr +1.3bp at

1.168% and 30-yr +1.2bp at 1.813% according to Tradeweb.

- Gilts opened marginally higher as markets continued to digest non-hawkish take

of BoE decision and comments from Governor Carney -- sluggish growth and brexit

consequences beginning to build.

- Prices reversed though as market took notice of early morning comments from

BOE Broadbent saying that he thinks the UK economy was better placed and could

cope with an interest rate hike. But did acknowledge Brexit is putting companies

off new investment. Short-end sold of the most, bear flattening the yield curve.

- Gilts sold off in wake of US Jobs data, but nowhere near the same level as US

Tsys or Bunds as market looked at possible diverging economies & rate prospects.

- Swap spreads are modestly wider with the exception of the 2-yr which is 1.3bp

tighter, while breakevens are little changed.