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Gilts slipped lower at the open, but...>

GILT SUMMARY
GILT SUMMARY: Gilts slipped lower at the open, but have quickly recovered to be
little changed from Thursday's close, volume though is very low given it being
last trading day of 2017. 10-yr Gilt yield is steady at 1.198%.
- As per last week there is a shortened trading day for Gilts and Short Sterling
contracts with settlement price taken at 1215GMT. However it appears its normal
trading hours for Eurex products.
- With next UK data not until Jan 2 with release of manufacturing PMI attention
is on German flash inflation data for December. So far the region of Saxony has
released modestly higher than expected CPI which rose to +0.6% m/m from+0.3%
m/m.
- So far both swap spreads and breakevens are little changed and showing no real
direction.
- Technically, on the Gilt future there is still the hourly resistance now
support at 124.90, while above first resistance is seen at 125.69, the high of
Dec 15.

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