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

GILT SUMMARY
GILT SUMMARY: Gilts look set to close modestly lower, with yield curve steeper,
reversing earlier gains as comments from BoE Carney/Tenreyro and strong US ISM
data weighs on sentiment in London afternoon trade.
- 2-yr yield is +0.3bp at 0.735%, 5-yr -0.5bp at 1.019%, 10-yr +1bp at 1.416%,
30-yr +1.6bp at 1.774% & 50-yr +2.2bp at 1.642% according to Tradeweb
- Dec Gilt future actually rose to intra-day high of 122.74 after NY traders got
to their desk, supported by risk-off flows as equites extended losses and
renewed emerging market concerns.
- Sentiment began to reverse however as BoE Carney, Haldane & Tenreyro spoke at
TSC hearing. Carney appeared open to the idea of staying at the helm of the BoE
longer to smooth Brexit transition, while Tenreyro said that her central
forecast was for inflation to remain slightly above target, which led to
steepeners being put on.
- Better than expected US ISM manufacturing then weighed on Gilts leaving the
Dec future trading at 122.50, down 8 ticks on the day
- Short sterling futures are steady to +2 ticks, easing slightly from day highs

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