It has been a relatively quiet.........>

GILT SUMMARY: It has been a relatively quiet session today in light of the US

public holiday, limited economic data and political newsflow. Simmering in the

background is an uptick in geopolitical tensions after Foreign Secretary Jeremy

Hunt waded into the Hong Kong protest dispute with China, and the Royal Marines

seized an Iranian tanker suspected of transporting oil to Syria.

- The Sep-19 gilt future trades at 132.33, up 30 ticks from Wednesday's close

and 12 ticks off the day's high; L-H: 131.86-132.45.

- Gilts have rallied with yields 1-3bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.4832% / -0.9bp / 0.4775%...0.4882%); 5Y (0.4685% / -2.2bp /

0.4636%...0.4735%); 10Y (0.6617% / -2.8bp / 0.6557%...0.667%); 30Y (1.2981% /

-1.7bp / 1.2919%...1.3032%).

- The curve has bull flattened: 2s10s (16.7bp / -1.6bp / 16.5bp..8.1bp); 2s30s

(80.3bp / -0.5bp / 80.1bp..80.9bp).

- The short sterling futures strip has flattened: W (+ 0.5/3.0 ticks); R (+

2.0/3.0 ticks); G (+ 2.0/3.0 ticks); B (+ 3.0 tick).