It was a quieter afternoon session.....>

GILT SUMMARY: It was a quieter afternoon session in Gilts, however, they faded

from Midday highs and look set to close modestly lower with yield curve holding

onto its bear flattening move as short-end remains under the most pressure

following UK Q1 GDP being revised up to 0.2% q/q from 0.1% q/q.

- 2-yr Gilt yield is +2.8bp at 0.728%, 5-yr +3.1bp at 1.031%, 10-yr +2.7bp at

1.282%, 30-yr +1.4bp at 1.736% & 50-yr +1.5bp at 1.578% according to Tradeweb.

- Gilts hit session highs at midday, bouncing off earlier surprise upward

revision to UK Q1 GDP induced lows, underpinned by renewed Brexit concerns

following Barnier's  "huge and serious differences" comment, and newswire

headline that US might pull out of WTO.

- Light selling pressure returned to the markets as NY session got underway and

this intensified in wake of larger than expected pick up in US PCE deflator.

Buyers though came back in and pushed Gilts back up towards session highs.

- Short Sterling futures currently lower with green contracts leading the way

down 2 to 3 ticks. 5-yr and 10-yr breakevens are 2.1bp and 1.9bp wider

respectively while 15-yr and 30-yr swap spreads are circa 1bp wider