It has been a slow news day,...........>

GILT SUMMARY: It has been a slow news day, punctuated by UK retail sales data

and weak eurozone PMI prints for April.

- While markets breathe a sigh of relief over the 6-month Brexit extension, the

head of the MakeUK industry lobby Stephen Phipson has stated that there is no

'good news' and that the delay means more uncertainty for business.

- Retail sales for March came in above expectations (ex auto fuel: 6.2% Y/Y vs

4.0% survey), with many commentators arguing this is the result of mild weather

and Brexit stockpiling. 

- Gilt yields have edged lower with yields 1-2bp lower on the day. Current yield

levels: 2-year 0.775%, 5-year 0.928%, 10-year 1.217%, 30-year 1.725%.

- The Jun 19 gilt future trades at 126.90 and 14 ticks off the high.

- Short sterling futures are 0.5-1.5 ticks lower.