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Gilts sold off in line with the........>

GILT SUMMARY
GILT SUMMARY: Gilts sold off in line with the global core FI trend Tuesday, with
equities rallying across the board (and Sterling recovering from early losses).
- The Mar 20 Gilt future is down 48 ticks at 134.35, having traded in a range of
134.28- 134.84 today.
- There has been bear steepening in the cash curve: the 2-Yr yield is up 2.2bps
at 0.497%, 5-Yr is up 4bps at 0.432%, 10-Yr is up 5.1bps at 0.564%, and 30-Yr is
up 5.3bps at 1.08%.
- A modest beat in Jan Const PMI helped the risk-on tone (48.4 vs 47.1 exp).
- DMO sold GBP800mln nominal of the 0.125% Nov-36 I/L gilt. Avg real yld -2.263%
(-2.566% previous auction), bid-to-cover 2.54x (2.03x).
- Not much on the data docket the rest of the week; final PMIs Wednesday is
about all that remains.

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