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Pater Chatwell of Mizuho Intl thinks the......>

GILTS
GILTS: Pater Chatwell of Mizuho Intl thinks the best way to trade the
announcement of the BoE's neutral rate would be to go short 2-yr Gilt as it
looks "bad value" at 0.801% as even a 1.5%-2.0% neutral rate would "tell the
markets that Bank rate could average 1.25% over coming 2-years".
- "GBP 2s/10s flatteners remain our central scenario", Chatwell adds and think
that a turn for the worse in Brexit negotiations will "prevent the 10-yr part of
the curve" from selling off. "Feel" 2s/10s inversion is more likely in UK than
US.

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