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Gilts looking to close higher riding...>

GILT SUMMARY
GILT SUMMARY: Gilts looking to close higher riding on the back of the rally in
German Bunds with the exception of 2-yr Gilt which is modestly lower, seen
weighed by continued rise in 3-month Sterling Libor fixing and less dovish
comments from BoE Ramsden.
- 2-yr Gilt yield is +0.9bp at 0.695%, 5-yr -1.5bp at 1.022%. 10-yr -2.8bp at
1.518%, 30-yr -1.5bp at 1.923% and 50-yr -1.7bp at 1.705%.
- There has been heavy selling in the front end of the short sterling strip
again today with Mar18, Jun18 and Sep18 contracts down 4.5, 5 and 4 ticks
respectively as 3-month Libor fixing continues to edge higher and as BoE Ramsden
said that UK GDP forecasts show excess demand due to very little spare capacity
in the economy.
- 5-10-yr breakevens are 1.5bp tighter, while 2-yr swap spreads are 2.2bp wider,
again as libor sets higher.
- Elsewhere PM May's spokesperson confirmed May will outline UK's Brexit
strategy on March 2. However, Jeremy Corbyn could spoil the party with a speech
scheduled for Monday.

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