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Gilts move back to flat but focus on 5-year swap

GILTS
  • Gilts now flat on the day after the curve saw a parallel shift to open with yields 1.0bp higher after the CPI data.
  • There is focus on the 5-year swap - we have again failed to break through the 1.348% level and we are now 1.4bp lower on the day at 1.318%.
  • Note that we wrote about a week ago about the widening of the 5-year swap spread over the past few weeks. See here and here for the two parts.

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