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Gilts look set to close modestly.......>

GILT SUMMARY
GILT SUMMARY: Gilts look set to close modestly higher, curve flatter, with
markets reacting to unsubstantiated market rumours that White House's Gary Cohn
has resigned despite reports of denials, rather than to any economic data.
- 2-yr Gilt yield is -0.1bp at 0.231%, 5-yr -0.3bp at 0.509%, 10-yr -0.8bp at
1.097% and 30-yr -0.9bp at 1.761% according to Tradeweb.
- Gilts initially opened on a higher footing supported by release of FOMC
minutes last night that highlighted concerns over lower inflation and when the
next interest rate hike should be, but agreement on balance sheet reduction.
- Sep Gilt though was capped at around yesterday's high of 127.76, with price
actually starting to drift lower ahead of UK retail sales data, before spiking
lower in knee-jerk reaction to higher than expected +0.3% m/m outcome. There was
some pull back as markets noted downward revision to June number, however prices
slipped further as attention turned to ECB minutes and US jobless claims.
- Gilts were trading marginally lower before rumors of Cohn resignation
circulated on twitter pushed them higher an hour or so before London close.
- Swap spreads are circa 1bp wider, while UK breakevens are little changed

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