- Having traded sideways since the.....>

GILT SUMMARY: - Having traded sideways since the open, gilts have sold off over

the past hour with the curve little changed.

- The benchmark 2-year gilt trades at 0.776% from an intraday low of 0.756%

while the 10-year trades at 1.549% from a yield low of 1.524%.

- The 2s10s spread trades at 76.4bps while the 2s30s has narrowed 2bps to

114.8bps.

- The Dec Gilt future trades at 121.27 and has drifted slightly lower throughout

the day.

- There has been a little movement in longer dated inflation breakevens with the

10-year benchmark edging down to 3.145% from a high of 3.160%.

- The short sterling futures strip is broadly 1.0-3.0 ticks higher. We have seen

little in the way of short sterling option flow today. The last significant

block reported by a market source was: L X8 99.12/00 PS + 99.12/98.87 PS ppr

pays 3.5 for the strip in 4k -mkt src