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It has been an uneventful London.......>

GILT SUMMARY: It has been an uneventful London morning session with a rather
muted reaction in wake of official start to US/China import tariffs with eyes
seen firmly on US jobs data released this afternoon. Gilts are currently steady
to lower with the short-end of the yield curve coming under some light selling
pressure and in-turn flattening the yield curve.
- 2-yr Gilt yield is +0.6bp at 0.73%, 5-yr +0.4bp at 1.014%, 10-yr +0.1bp at
1.255%, 30-yr -0.5bp at 1.703% & 50-yr -0.3bp at 1.559% according to Tradeweb.
- Sep Gilt future opened lower, but quickly pared losses as markets appeared
sanguine about the start of the US/China trade spate and Brexit headlines were
limited to talk of ex-PM Cameron persuading Boris Johnson to sign up with PM
May's latest customs deal.
- Markets are keeping one eye on if there will be any cabinet resignations
within the government and another on US jobs data at 1330BST.
- Short Sterling strip has pared some of their earlier move lower, but red and
green contracts remain 1 tick lower on the day. 30-yr breakevens are 0.7bp wider
while swap spreads are little changed.

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