Gilts remain bid, particularly at......>

GILT SUMMARY: Gilts remain bid, particularly at the longer end, despite this

morning's better-than-expected retail sales data, which follows a similar beat

for inflation yesterday. Fears over coronavirus continue to loom large and

remains the dominant market theme for now.

- Earlier in the session the DMO sold Stg3.25bln of the 1.50% Jul-26 Gilt, which

received decent demand (1.7x cover). 

- The Mar-20 gilt future trades at 134.11, up 20 ticks from Wednesday's close

and 17 ticks off the day's high; L-H: 133.91-134.28.

- Gilts yields (Last / 1d chg / L..H): 2Y (0.5157% / +0bp / 0.5082%...0.5183%);

5Y (0.4635% / -0.1bp / 0.4543%...0.4669%); 10Y (0.5845% / 0bp /

0.5733%...0.5854%); 30Y (1.056% / 0bp / 1.045%...1.0595%).

- The curve has flattened: 2s10s (6.2bp / -1.1bp / 5.7bp..7bp); 2s30s (53.3bp /

-0.1bp / 52.9bp..55.2bp)