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GILT SUMMARY

Gilts have sold off through the session and the curve has steepened on the back of fresh concerns over inflation. Equities have similarly notched up losses during the day while cable continues to edge higher after pushing through the 1.40 level yesterday.

  • Gilt cash yields are now 2-5bp higher with teh curve 3bp steeper. Last yields: 2-year 0.0580%, 5-year 0.3517%, 10-year 0.8311%, 30-year 1.3810%.
  • The Jun 21 gilt future trades at 127.78, near the bottom of the day's range (L: 127.69 / H: 128.08).
  • The DMO earlier sold GBP3bn of the 375% Oct-26 Gilt and GBP1.5bn of the 0.50% Oct-61 Gilt.
  • The BoE purchased GBP1.147bn of long-dated gilts with offer-to-cover of 2.07x.

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