Gilts look set to close Friday mixed...>

GILT SUMMARY: Gilts look set to close Friday mixed following light choppy 2-way

flow in wake of US advanced Q2 GDP release with the yield curve modestly steeper

as ultra long-end comes under the most selling pressure while the short-end

remains anchored.

- 2-yr Gilt yield is +0.5bp at 0.766%, 5-yr -0.1bp at 1.028%, 10-yr +0.3bp at

1.284%, 30-yr +0.7bp at 1.735% and 50-yr +1.7bp at 1.586% according to Tradeweb

- Sep Gilt future was trading close to session lows just before the US advanced

Q2 GDP numbers crossed the wires but then spiked higher and eventually hit fresh

highs as number came in slightly below expectations (4.1% vs 4.4%).

- The future gradually faded the higher move though aided by comments from US

President Trump that he expected the still high GDP growth to continue in the

quarters ahead supporting creation of new jobs.

- Short sterling futures are mixed with Sep8 & Dec8 0.5 & 1 tick higher while

Sep9 through to Sep21 contracts are 1 ticks lower

- Looking ahead to next week, the key event will be BoE super Thursday meeting

with majority of markets expecting the MPC to hike rates by 25bps.