The gilt curve has bear steepened......>

GILT SUMMARY: The gilt curve has bear steepened with the very long-end selling

off sharply.

- Yields are 3-8bp higher, with the 40/50-year benchmarks underperforming.

Current yield levels: 2-year -0.651%, 5-year -0.587%, 10-year -0.365%, 30-year

0.105%.

- The Sep-20 gilt future trades at 136.33, 9 ticks of the day's low.

- Earlier the DMO sold GBP3.25bn of the 2.25% Sep-23 gilt and GBP1.50bn of the

1.625% Oct-54 gilt. A further GBP1.25bn of the former was sold through the PAOF

facility.

- In his weekly call with UK commercial bankers, BoE Governor Andrew Bailey

urged banks to ensure sufficient preparations in the event that the UK and EU

fail to reach a trade settlement this year.

- The final PMI prints for May, published this morning, did not move the meter.

Data for the rest of the week will be thin on the ground with attention shifting

to the ECB meeting on Thursday.