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Gilts trading lower and underperforming.......>

GILTS
GILTS: Gilts trading lower and underperforming Bunds & US Tsys, with the yield
curve pivoting around the 10-yr point as markets trade with slight risk-on
sentiment as Russian and Iranian reaction to Syrian missile strikes has so far
been limited to just a few choice words.
- 2-yr Gilt yield is +2.1bp at 0.928%, 5-yr +3.1bp at 1.217%, 10-yr +4.7bp at
1.482%, 30-yr +3.9bp at 1.845% and 50-yr +4bp at 1.655% according to Tradeweb.
- 10-yr Gilt future is testing some key support levels and is holding for now
but any break below could see some stop loss selling and drive 10-yr Yield
quickly to the 1.50% level.
- UK data today has been limited to latest VISA spending data from March, which
did not make good reading with the bad weather looking to have taken effect.
However latest UK Jobs report is released on Tuesday, followed by March
inflation data on Wednesday and then official retail sales on Thursday. DMO also
tap 10-yr Gilt on Thursday. US retail sales will be in focus this afternoon
- Swap spread are tighter across the board, while breakevens are mixed with
curve steeper as 30-yr creep wider.

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