Having started the session on a........>

GILT SUMMARY: Having started the session on a strong footing, gilt quickly gave

up the early gains and have remained offered through the afternoon. A positive

slate of economic data has partially offset the hit to risk sentiment from the

escalation in US-China relations.

- The Sep-20 gilt future trades at 137.90 towards the bottom end of the day's

range and 3 tick's off the low.

- Cash yields are broadly 2bp higher with the curve trading close to flat. Last

yield levels: 2-year -0.0871%, 5-year -0.0969%, 10-year 0.1461%, 30-year

0.6580%.

- The DMO earlier sold GBP3.5bn of 1-/3-/6-month bills.

- UK retail sales for June and preliminary PMI data for July surprised sharply

to the upside. Looking ahead, the data calendar will lack Tier 1 data next week.

The Lloyds Business Barometer, CBI Retailing Reported Sales, and Nationwide

House price index for July will be published, as well as money supply and

mortgage data for June.