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Gilts look to close higher but off.....>

GILT SUMMARY: Gilts look to close higher but off session best levels, as they
take cue from movement in German Bunds following ECB press conference. The 2-yr
part of the yield curve is an exception though and has remained in negative
territory throughout the day and in-turn flattens the yield curve.
- 2-yr Gilt yield is +0.6bp at 0.894%, 5-yr -0.8bp at 1.232%, 10-yr -2.6bp at
1.515%, 30-yr -2.8bp at 1.896% and 50-yr -3.2bp at 1.688% according to Tradeweb.
- There was only second tier data from the UK today, but what there was, only
supported the current run of disappointing data. UK March mortgage approvals
dipped to a 3-month low as the housing market cools further. While the CBI
Distributive Trades Survey showed retail sales growth fell in the year to April
with sales volumes declining for the second month in a row. A pick-up is
expected in May however.
- Breakevens are circa 1bp tighter, while swap spreads are mixed with the ultra
long-end 1.5bp wider.
- Tomorrow sees release of 1st estimate of Q1 GDP for the UK and comments from
BoE Governor Carney.

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