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RBC think the new 10-yr Oct-28 Gilt ahead.....>

GILTS
GILTS: RBC think the new 10-yr Oct-28 Gilt ahead of its re-opening auction today
is "fairly priced after accounting for new issue discount".
- Add that the "main appeal comes from cross-market perspective" with Gilt/Bund
spread only around 4bps off recent highs despite yesterday's rally. And while
Gilt/Tsy spreads are near all-time lows, believe it can go further. 
- "Some demand is also likely on ASW as 10yr spreads have cheapened somewhat vs.
the 30yr counterpart. With the supply over the next few weeks dominated in the
long-end, tactically buying 10yr spreads vs. 30yr looks attractive" RBC
conclude.

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