The 10Y gilt futures followed the......>

GILT SUMMARY: The 10Y gilt futures followed the bunds lower in London morning

trading, which were seen weighed down by the flash EMU PMI data. The 10Y gilt

futures are currently trading 42 ticks lower at 124.18 near the day's lows. The

2-10Y part of the yield curve is modestly steeper while the 10-30Y part of the

curve is slightly flatter. 

- 2-yr Gilt yield is +2.3bp at 0.458%, 5-yr +2.7bp at 0.786%, 10-yr +3.7bp at

1.341% and 30-yr +2.4bp at 1.906% according to data from Tradeweb.

- In a solid auction today the UK's Debt Management Office (DMO) sold Stg0.65bln

of inflation linked Gilt 0.625% at a yield of -1.549% with a bid-to-cover ratio

of 2.37 times. 

- Both UK breakevens and swaps spreads are trading mixed with 2Y swap spreads

currently trading 1.6bp tighter while the 15Y is 1.2bp wider and the 30Y

breakevens are 1.5bp wider.

- UK Chancellor Philip Hammond is due to take questions from 1130BST at the

House of commons.