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

GILT SUMMARY: It has been a relatively quiet session for gilts, which have

firmed slightly during the afternoon.

- The Jun-20 gilt future trades at 137.94, 2 ticks off the day's high.

- Cash yields are 1-2bp lower on the day with the curve trading flat. Current

yield levels: 2-year 0.0098%, 5-year 0.071%, 10-year 0.213%, 30-year 0.556%.

- Following the release of the final service and composite PMI prints for April

(both marginally better than the initial estimates, but still indicate a deep

economic contraction), this week's tier 1 data is now in the rear view mirror.

- Focus shifts to the BoE MPC meeting this week. Although consensus expects no

major change in policy, there are a minority expecting the BoE to announce an

increase of QE in the order of GBP100-150bn. The meeting will coincide with new

official macroeconomic projections, which will show a very severe drop in

economic growth since the last forecasts were published.