It was a session of 2-halves in the....>

GILT SUMMARY: It was a session of 2-halves in the Gilt market Monday with the

morning sell-off giving way to a recovery in the afternoon and Gilts now look

set to close mixed  with the yield curve flattening as short-end seen weighed by

rise in offer ratio at BoE buying op.

- 2-yr Gilt yield is +0.8bp at 0.899%, 5-yr +1bp at 1.207%, 10-yr +0.7bp at

1.451%, 30-yr -0.2bp at 1.754% and 50-yr -0.4bp at 1.531% according to Tradeweb.

- ECB Nouy saying that he sees an increase in banks taking action on Brexit

plans, newswire reports of a number of EU countries, US and Canada expelling

Russian diplomats in response to the UK Salisbury attack and erosion of rally in

equities appeared to support recovery in Gilts in the afternoon.

- There was a slight dip lower in Gilts following a rise in offer ratio at

latest BoE APF reinvestment operation in the 3-yr to 7-yr sector, but continued

weakness in stocks lifted Gilts once more.

- Traders also keeping eye on 3-mth GBP Libor fixing which continues to rise.

2-yr swap spread is 0.3bp tighter & breakevens are circa 0.5bp tighter