It was a very tame trading session.....>

GILT SUMMARY: It was a very tame trading session on the final days of March. The

10Y Gilt yield is down just under 1bp at 1.359%. This was enough to outperform

German 10Y debt.

- There were some data releases, none of which were able to push the market

around. UK GfK consumer confidence data rose to -7 in March from -10. Nationwide

house prices fell 0.2% in March, taking the annual rate down from 2.2% to

2.1%Y/Y and is being dragged lower by London.

- The main event in the afternoon was the month-end flow. The Bloomberg-Barclays

Sterling Agg Tsy rises by a very impressive 0.3Y, ten times the 0.03Y average

month-end duration extension for the past year. UK Gilt Linker Index extension

is 0.03 years. So far, the impact appears fairly limited.

- While nominal yields were little changed, the index-linked market was

extremely buoyant and the 5Y real yield fell 4.5bp to -2.0%. This yield decline

follows a week of strong linker performance.