Gilts look set to end steady to........>

GILT SUMMARY: Gilts look set to end steady to sharply lower following a strong

US jobs report, led by the sell-off in the 10-yr future and therefore pivoting

the yield curve.

- 10-yr Gilt yield is 4.3bp higher at 1.574%, with 2s/10s 4.9bp steeper at

91.4bps and 10s/30s 2.5bp flatter at 38.7bps.

- March Gilt future recovered around half of its losses seen in the immediate

aftermath of the strong US jobs report that showed 200k rise in non-farm

payrolls and larger than expected increase in average hourly earnings, as

sell-off in the UK looked over-done.  

- FTSE is marginally lower but fairing better than its European counterparts,

while the pound has slipped versus both the US Dollar and the Euro.

- Breakevens are wider led by 2.4bp rise in 10-yr, while swap spreads are once

again mixed with 2-yr 0.8bp tighter and 30-yr and above 1bp wider.

- Next week, Davis meets Barnier in London which could throw up some headlines.

While Eyes and ears will also be on Bank of England Super Thursday and if there

will be any hawkish comments/signals from the MPC.