Short-dated Gilts are pressured this..........>

GILTS: Short-dated Gilts are pressured this morning, perhaps driven by the

weakness of the dollar over the past 24 hours. The 2Y is already 2.5bp higher at

0.442%, causing a 1.5bp flattening of the 2-10Y spread. 

- The dollar movement is the driver of many markets and is being largely

attributed to month-end rebalancing needs. The markets are starved of news and

bored of discussing bitcoin thus, the FX movements are perhaps having too large

an impact upon bond prices.

- There is little movement in index linked Gilt real yields today.

- The UK Finance Loans for Housing has been rescheduled for release today at

0930GMT.

- Technically, there is little to prop the market until 124.90, which is only

hourly resistance.