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Recouping Earlier Losses

GILT SUMMARY

Gilts sold off earlier on the back of news that Moderna has a Covid vaccine which is 94.5% effective, and follows close on the heels of last week's announcement from Pfizer that it too has a vaccine.

  • Gilts have traded in a relatively wide range through the day, with the midday losses being recouped through the afternoon.
  • Gilt cash yields are now 1-2bp higher on the day. Last yields: 2-year -0.03%, 5-year 0.0176%, 10-year 0.3448%, 30-year 0.9382%.
  • The Dec-20 gilt future trades at 134.68, 7 ticks off Friday's close and near the middle of the day's range (L: 134.21 / H: 134.94).
  • Short sterling futures are broadly flat/0.5 ticks lower in whites/reds/greens/blues.
  • Looking ahead, October CPI will be published on Wednesday

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