Gilts look set to close mixed..........>

GILT SUMMARY: Gilts look set to close mixed following late recovery, having

spent the majority of the day in negative territory with upcoming UK data and

Brexit concerns seen supporting late bid. Curve flattening

- 2-yr Gilt yield is +0.7bp at 0.752%, 5-yr +0.1bp at 1.102%, 10-yr -0.8bp at

1.398%, 30-yr -1.4bp at 1.851% & 50-yr -2.0bp at 1.681% according to Tradeweb.

- UK jobs data was mixed with the rise in employment surprising to the upside,

rising 141k but with wage growth ex bonus slipping to 2.8% from 2.9%. Overall

data weighed on the short-end of the curve more than the long-end.

- Things are heating up in the EU Withdrawal Bill debate in the House of Commons

with PM May said to be making last ditch efforts to persuade the 'rebellions'

within her own party not to vote against the government later. 

- Tomorrow see release of UK inflation data for May, seen key to determining

chances of the BoE raising rates in August. 

- Short sterling is trading little changed, markets uncertain which direction to

take as data proving inconclusive. Swap spreads now also little changed on day

reversing earlier tightening move, breakevens 0.5-1.5bp wider.