Long-end of Gilts sold off in London..........>

GILTS: Long-end of Gilts sold off in London afternoon trade, catching up with

losses on the short-end seen after higher than expected CPI data, as US stocks

looked to pare losses and concerns inflation will remain at higher levels for

longer. Yield curve has shifted higher.

- 2-yr Gilt yield is +0.7bp at 0.692%, 5-yr +1.0bp at 1.098%, 10-yr +1.1bp at

1.612%, 30-yr +0.4bp at 1.985% and 50-yr +1.0bp at 1.773%.

- Jan CPI remaining at 3.0% y/y in Jan and a 0.2% rise in core CPI led to

short-end reversing gains and falling lower, only for the longer end to hold

onto mild gains.

- The long-end though came under more selling pressure mid-way through London

afternoon session, as stocks pared losses, however, with little news seen to

trigger the move, they bounced off lows. Then Fed Powell comments that the

central bank will preserve essential gains in financial regulation made since

crisis and remain alert to any financial stability risks weighed on Gilts

towards close.

- 30-yr breakevens look to finish unchanged, but 5-yr has tightened by 4bps