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GIVING UP EARLY GAINS

GILT SUMMARY

Gilts rallied early into the session and then quickly gave up the gains, trading sideways for much of the afternoon.

  • The Dec-21 gilt future trades at 136.22, 6 ticks off the day's low.
  • The short end of the curve trades close to unch on the day, while yields at the longer end have drifted higher and are now 1bp higher. Last yields: 2-year -0.0579%, 5-year -0.0579%, 10-year 0.2106%, 30-year 0.7606%
  • The short sterling futures strips is broadly 0.5-1.0 ticks lower in whites/reds/greens/blues.
  • Preliminary September PMI data released earlier in the session showed continued expansion across the manufacturing and services sectors.
  • Looking ahead, Friday will see the release of CBI Retailing Reported Sales data for September.

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