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Modest Gains

GILT SUMMARY

Gilts have traded firmer through the session alongside a bull flattening of the curve.

  • Gilt cash yields are 1-2bp lower on the day with the curve 1bp flatter. Last yields: 2-year -0.0441%, 5-year 0.0102%, 10-year 0.0106%, 30-year 0.9027%.
  • The Mar 21 gilt future trades at 133.90, 15 ticks off the day's high.
  • Short sterling futures are flat/0.5 ticks higher in whites/reds and flat/1.0 ticks higher in greens/blues.
  • The final PMI prints for November came in better than expected (Services: 47.6 vs an initial 45.8; Composite: 49.0 vs 47.4)
  • EU diplomats have warned that a Brexit deal remains some way off with significant divergences remaining. France earlier warned that it could veto any agreed Brexit deal if it proved unsatisfactory.

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