Once again Gilt markets were...........>

GILT SUMMARY: Once again Gilt markets were watching the equity markets, however

there was less volatility today and Gilts look set to close modestly higher with

the yield curve bull steepening as 5-yr sector outperforms.

- 2-yr Gilt yield is -5.1bp at 0.828%, 5-yr -6.4bp at 1.117%, 10-yr -4.9bp at

1.365%, 30-yr -2.5bp at 1.715% and 50-yr -2.2bp at 1.506% according to Tradeweb.

- After rally in the first hour of trading Gilt future settled into a tight

upper trading range for the remainder of Wednesday's session, only reacting

modestly to the wild swings in US stocks when they opened. A rise in the offer

ratio at BoE APF reinvestment op in 7-yr-10-yr sector also temporarily weighed

on Gilts. However main interest remained on the performance of equity markets.

- Tech stocks initially got hit hard with Nasdaq trading 1% lower before paring

losses, only then to touch fresh lows and now is 1% lower, while S&P 500 -0.25%

- Elsewhere there was evidence that the 'Beast from the East' hit consumer

spending in March while BoE agents survey found Labour cost growth remaining

subdued but settlement pay rising into 2.5% to 3.5% range.

- Swap spreads are wider led by 2-yr, while breakevens are steady