- The front-end of the gilt curve......>

GILT SUMMARY: - The front-end of the gilt curve has lacked direction while the

longer-end has rallied. The 2-year benchmark yield has held within a

0.723/0.749% range while the 10-year yield has pushed down to 1.274% from a high

of 1.304%.

- The curve has flattened with the 2s10s spread narrowing to 52.9bps from a high

of 55.6bps. The very long end has outperformed the curve in the wake of the

earlier auction of the 1.75% Jan-48 gilt linker. The benchmark 30-year yield has

fallen to 1.861% from 1.931% with the 2s30s spread trading down 7bps. 

- Inflation breakevens edged lower through to mid-morning and have ticked up

since 1130BST. The 5-year benchmark trades at 3.172% off a morning low of

3.163%. 

- The short sterling futures strip has flattened with greens/blues up 3.0-3.5

ticks.

- Cable trades at 1.2748 and has held within a relatively tight range.