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Having started on a stronger footing...>

GILT SUMMARY
GILT SUMMARY: Having started on a stronger footing and then trading sideways for
most of the session, gilt yields are now returning to the day's lows.
- Cash yields are broadly 1-2bp higher and the curve has bull flattened.
- Current yield levels: 2-year -0.007%, 5-year 0.073%, 10-year 0.3293%, 30-year
0.7658%.
- The Sep-20 gilt future trades at 135.65, 2 ticks off the day's high.
- Short sterling futures broadly trade flat/0.5 ticks higher in whites through
blues.
- Looking ahead, the data calendar will be relatively light until Friday when
monthly GDP, industrial production, construction output, international trade and
index of services data for April will be published.
- The main focus this week, however, will be the FOMC meeting on Wednesday which
comes on the back of last Friday's better than expected US jobs report and the
ECB's decision to raise the PEPP by EUR600bn.

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