Gilts traded slightly higher in a......>

GILT SUMMARY: Gilts traded slightly higher in a fairly quiet day of trading,

with yields following the US rally in the afternoon, and markets awaiting any

news from the Debt Management Office`s GEMMS meetings Monday afternoon to

discuss Oct-Dec Gilt issuance.

- The Sep-18 Gilt future rose 4 ticks to 123.79, reversing a drop early in the

session that extended as far as 123.54.

- The UK curve has bull flattened slightly. 2-Yr yields down 0.6bps at 0.701%,

10-Yr down 1.4bps at 1.222%, and 30-Yr down 1.5bps at 1.707%.

- This is shaping up as one of the lowest-volume days of the year for Short

Sterling, just 10k traded in front contract L 1, following on from a quiet

Friday. The strip is slightly higher, with Reds and Blues up a tick.

- Speaker and data flow fairly thin. Tuesday sees DMO tap the 0.125% Aug-28 IL

Gilt for Stg1.1bln in the morning, as well as July public sector borrowing data.