It has been a rather lacklustre........>

GILT SUMMARY: It has been a rather lacklustre morning session with little seen

to direct markets, but the overall theme has been one of selling any mini-rally

in Gilts as markets continue to digest yesterday's BoE monetary policy meeting.

Yield curve has slightly bear flattened as short-end has come under the most

selling pressure.

- 2-yr Gilt yield is +2.3bp at 0.796%, 5-yr +1.8bp at 1.135%, 10-yr +1.7bp at

1.439%, 30-yr +1bp at 1.861% and 50-yr +1.1bp at 1.66% according to Tradeweb.

- BoE Broadbent was on the taps this morning saying that the overall message

from the central bank is that interest rates will rise gradually and that he

thought the weak economic growth in Q1 would be temporary but it was correct to

wait and see.

- Last night, BoE Carney said that a rise in next over the next year was the

most likely thing to happen.

- Short sterling strip opened 0.5 to 2 ticks lower and has not moved much from

there as markets reverse some of the 5 to 6 tick move higher seen yesterday.

- Breakevens are ~2bp wider while swap spreads are little changed.