Gilts recovered earlier lost ground....>

GILT SUMMARY: Gilts recovered earlier lost ground and hit fresh session highs on

return of flight-to-quality bid as the Turkish Lira capitulated in London

afternoon trade. The 10-yr sector is leading the rest of the curve higher and in

turn pivoting the yield curve. 2s/10s is 1.7bp flatter and 10s/30s 1.3bp

flatter.

- 2-yr Gilt yield is -3.4bp at 0.705%, 5-yr -4.8bp at 0.991%, 10-yr -5.4bp at

1.247%, 30-yr -4.1bp at 1.717% & 50-yr -3.6bp at 1.569% according to Tradeweb.

- Gilts have pretty much fluctuated around the fortunes of the Turkish Lira all

day Friday, rally on any sign of weakness, but paring gains on any recovery.

- Erdogan comments gave little support to the Lira, urging Turkish citizens to

sell gold and buy the ailing currency. A US President Trump Tweet then made it

worse by announcing a doubling of steel an Aluminium tariffs on imports from

Turkey, which sent the Lira sharply lower.

- In comparison the raft of UK data released today had very little impact on

Gilts as majority came in-line or slightly better than expected.

- Short Sterling strip is flatter as blue contracts rise by 5-6 ticks.