Gilts participated in the early........>

GILT SUMMARY: Gilts participated in the early strength bestowed on global bond

markets because of geo-political events, Indeed, Gilts did better than most.

Yet, once the high water mater was achieved at around the middle of the morning,

the selling hit Gilts far more than in say, Bunds.

- Thus, Gilts were high-beta Bunds on Friday so the Bund-Gilt spread notched a

low of 65.5bp before ending close to 67.5bp.

- There were no UK data but MPC member, Michael Saunders gave a modestly hawkish

interview in the Evening Standard saying growth was likely "to be OK and the

jobless rate will continue to fall, and that's what's motivated my view on

rates"

- Checking the OIS forwards, the next 25bp BoE rate hike is not fully priced in

until Q3 2019.

- By the close of the day, the 10Y Gilt yield was 1.5bp lower at 1.067%, and the

10Y was also the best performing section of the yield curve.