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Gilts opened higher but swiftly........>

GILT SUMMARY
GILT SUMMARY: Gilts opened higher but swiftly moved lower as German and US bond
yields jumped.
- Sep8 future is off 14 ticks at 123.75, having risen to 123.87 at the open.
- A bit of an uptick on Foreign Minister Hunt's comments on BBC radio,
reiterating cautious optimism on getting a Brexit deal, but cautioning that
chances of no deal are 'not negligible'.
- Curve slightly steeper with a 0.4bps rise in 2-Yr Gilt yields to 0.709%, with
10-Yrs up 0.7bps to 1.230%.
- DMO released minutes on consultation meetings on Oct-Dec issuance with
Gilt-edged Market Makers and representatives of Gilt investors Monday. Unanimous
recommendation among GEMMs that next syndication should be a re-open of 1.625%
Oct-71 Gilt. Calendar to be announced on 31 Aug.
- Short Sterling futures a little weaker, most of the strip down 1 tick.
- UK July public sector borrowing data the highlight of the morning. Aug-28
linker auction up later this morning for Stg1.1bln.

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