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REMAINING BID

GILT SUMMARY

Gilts have remained bid through the session and the curve has bull flattened with yields holding near the lows of the day.

- The Sep-20 gilt future trades at 138.81, 12 ticks off the day's high.

- Cash yields are 1-3bp lower on the day with the 2s10s spread 2bp narrower. Last yield levels: 2-year -0.0822%, 5-year -0.1416%, 10-year 0.0703%, 30-year 0.5936%.

- The short sterling futures strip has flattened with greens/blues up 1.0-1.5 ticks.

- The DMO earlier sold GBP3.25bn of the 0.125% Jan-26 Gilt and GBP2.25bn of the 1.25% Oct-41 Gilt. A further GBP812.499mn and GBP562.499n, respectively, was taken up throught eh PAOF.

- Looking ahead, tomorrow will see the publication of the final service and composite PMI prints for July.

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