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Hopes Rising For Trade Deal

GILT SUMMARY

Gilts have sold off sharply and the curve has bear steepened with reports hitting the wires suggesting that the UK and EU are close to announcing a post-Brexit trade deal.

  • Gilt yields are now 5-12bp higher on the curve with the 2s30s spread 7bp wider. Last yields: 2-year -0.1142%, 5-year -0.0312%, 10-year 0.2826%, 30-year 0.8482%.
  • The Mar 21 gilt future trades at 134.44, near the bottom of the day's range (L: 134.31 / H: 135.69).
  • The short sterling futures strip has steepened with whites/reds up 1.5-6.0 ticks and greens/blues up 6.0-9.0 ticks.
  • Health Secretary Matt Hancock has announced that additional areas in England which will be placed under Tier 4 restrictions following surging coronavirus infections.

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