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Govt Ramps Up Efforts To Secure Vaccine Supplies

GILT SUMMARY

Gilts opened the week on a strong footing but gradually gave back some of the early gains while still trading above the Friday close.

  • Cash yields are flat/1bp lower on the day. Last yields: 2-year 0.0775%, 5-year 0.3783%, 10-year 0.8287%, 30-year 1.3508%.
  • The Jun 21 gilt future trades at 127.64, 9 ticks off the day's low
  • Amid the EUs escalating threat to suspend exports of Covid vaccines, PM Boris Johnson has warned that Europe's third wave will spillover to the UK.
  • Reports have also come out today that the UK government has sent a taskforce to India in a bid to speed up the delivery of 5mn doses of the AstraZeneca vaccine.
  • The BoE purchased GBP1.48bn of short-dated gilts with offer-to-cover of 2.61x.
  • The DMO will tomorrow tap the .75% Jan-49 gilt for GBP2.25bn.

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