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Lacking Catalysts

GILT SUMMARY

Gilts started the session on a firm footing, but sold off through the morning with sidesways trading prevailing during the afternoon.

  • Cash gilts now trade close to unch on the day with the curve flat overall. Last yields: 2-year -0.1381%, 5-year -0.0444%, 10-year 0.2944%, 30-year 0.8718%.
  • The Mar-21 gilt future trades at 134.35, towards the bottom end of the day's range (L:134.26 / H: 134.56).
  • Short sterling futures are broadly flat/0.5 ticks lower in whites/reds/greens/blues.
  • The BoE purchased GBP1.48bn of short-dated gilts with offer-to-cover of 2.88x.
  • Looking ahead, Wednesday sees the release of CPI data for December.
  • The DMO will launch the new 25-year 0.875% Jan-46 gilt this week via syndication.

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