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HOLDING ON TO EARLY GAINS

GILT SUMMARY

Gilts rallied through to late morning and have held on to gains through the afternoon session.

  • Cash yields are broadly 1-2bp lower on the day. Last yields: 2-year -0.096%, 5-year -0.0506%, 10-year 0.2484%, 30-year 0.8238%.
  • The Dec-20 gilt future trades at 135.76, near the top end of the day's range and 8 ticks off the session high.
  • Short sterling futures are 1.0-1.5 ticks higher in whites through blues.
  • Focus today has been on reports that the UK government could seek to pass new legislation that could override parts of the Withdrawal Agreement and further risk undermining Brexit negotiations.
  • Looking ahead, tomorrow sees the release of BRC Like-For-Like sales for August.

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