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GILT SUMMARY

Gilts have been offered today with news that the Oxford-AstraZeneca vaccine has up to 90% efficacy providing a lift to risk sentiment.

  • Gilt cash yields are broadly 2bp higher on the day with the curve trading close to flat overall. Last yields: 2-year -0.0279%, 5-year 0.0134%, 10-year 0.3241%, 30-year 0.9083%.
  • The Dec-20 gilt future trades at 134.94, towards the lower end of the day's range (L: 134.80 / H: 135.27).
  • Short sterling futures are broadly 0.5-2.0 ticks lower in whites/reds/greens/blues
  • PM Boris Johnson today unveiled tougher new tiering restrictions when the national lockdown ends on December 2.
  • Preliminary November PMI data beat expectations with the manufacturing print coming in at 55.2 vs 50.5 survey and the services estimate coming in at 45.8 vs 40.3 expected.
  • Looking ahead, tomorrow the DMO will auction GBP2.75bn of the 1.25% Jul-27 Gilt and GBP1.25bn of the 1.75% Jul-57 Gilt.

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