Gilts opened lower and have traded.....>

GILT SUMMARY: Gilts opened lower and have traded sideways for the remainder of

the London morning session, with the yield curve slightly bear steepening.

- 2-yr Gilt yield is +1.2bp at 0.205%, 5-yr +0.9bp at 0.476%, 10-yr +1.7bp at

1.068% and 30-yr +1.7bp at 1.730% according to Tradeweb.

- There was a soft opening in Gilts, with markets seen paring some of the rally

seen on Wednesday afternoon as markets look ahead to 2nd estimate of Q2 GDP data

and later the start of the Jackson Hole conference.

- While the pound has bounced off overnight lows versus the Euro and the US

Dollar and the FTSE 100 index is ticking higher so far Thursday despite profits

warning from Dixons Carphone.

- Lower than expected consumer spending and fall in the level of business

investment highlighted in the 2nd estimate of Q2 GDP data lead to a rebound in

Gilts. While newswire reports of a 81k fall in UK net migration also seemed to

underpin recovery in Gilts.

- Swap spreads are mixed with 2s +1.2bp and 30s -1.3bp. While 10-yr and 30-yr

breakevens are around 1bp wider.