Gilts look set to close Tuesday........>

GILT SUMMARY: Gilts look set to close Tuesday little changed having reversed

majority of opening losses on back of soft UK labour data and taking cue from

recovery in US Treasuries in London afternoon trade. Ultra Long-end has edged

lower, flattening the yield slightly with 10s/30s 0.4bp tighter.

- 2-yr Gilt yield is +0.1bp at 0.717%, 5-yr +0.1bp at 1.008%, 10-yr +0.1bp at

1.265%, 30-yr -0.2bp at 1.731% & 50-yr -0.9bp at 1.576% according to Tradeweb.

- Sep Gilt future edged higher after cross over to NY trade as US treasuries

bounced off lows on mild bid, however rally was seen capped as stocks pared

losses on back of strong Home Depot earnings.

- Earlier, Gilt future faded opening move lower following overall soft UK labour

report that showed average weekly earnings slipping lower and much smaller rise

in employment.

- Short sterling futures are mixed with the strip little changed as markets

looking ahead to release of July inflation data tomorrow.