Speaking at an Inflation Targeting.....>

GILT SUMMARY: Speaking at an Inflation Targeting Conference today, BoE Governor

Mark Carney suggested that monetary policy could be adjusted with the view to

committing to a 'lower for longer' strategy for policy rates until inflation is

well above target.

- Carney's comments have pulled in short-end gilt yields and underpinned at a

sell-off in longer maturities. 

- The Mar-20 gilt future trades at 131.31, down 25 ticks from Wednesday's close

and 27 ticks off the day's low; L-H: 131.04-131.66.

- Cash yields (Last / 1d chg / L..H): 2Y (0.5744% / -4.9bp / 0.5635%...0.5756%);

5Y (0.6086% / -2.3bp / 0.6008%...0.6127%); 10Y (0.8106% / -0.5bp /

0.7997%...0.8152%); 30Y (1.2969% / +1.6bp / 1.2807%...1.2987%).

- The curve has steepened: 2s10s (23bp / 4.3bp / 20.8bp..23.8bp); 2s30s (71.6bp

/ 6.4bp / 68.4bp..71.9bp).

- Short sterling futures trade mixed with whites outperforming: W (+ 2.0/4.0

ticks); R (broadly + 0.0/1.5 ticks higher); G (broadly - 0.0/1.0 ticks lower); B

(- 1.0/2.0 ticks).