Gilts opened weak and continued........>

GILT SUMMARY: Gilts opened weak and continued lower through most of the morning

and largely following the more sizeable sell-off in the Bund market. However,

buying appeared by the middle of the morning and around half of the losses have

been reclaimed. 

- Presently, the 10Y Gilt yield is 1.4bp higher at 1.186% and the curve slope is

marginally flatter. 

- The rise in yield is completely contained within the real yield space,

breakevens have been virtually static so far on Thursday.

- The FTSE is largely flat but sterling is taking advantage of across-the-board

weakness of the dollar such that cable has reached 1.3435.

- The only data was UK loans for hour purchase for Nov, which dipped to 39507

from 40417 and is the lowest since Sept 2016.