The gilt curve has bull flattened......>

GILT SUMMARY: The gilt curve has bull flattened through the session alongside a

poor session for equities and a sharp correction in oil.

- The Fed's downbeat assessment of the economic outlook at yesterday's FOMC has

been a contributing factor refocusing minds on the difficulty of returning to

normal following the shutdown of national economies.

- The Sep-20 gilt future trades at 137.25, near the top of the day's range

(136.78 - 137.42).

- The rally has been particularly pronounced at the long end of the curve with

30/40/50-year cash yields down 7bp on the day and the 2s10s spread 6bp narrower.

- The short sterling futures strip has flattened with whites up 0.5-2.0 ticks

and blues up 4.5-5.5 ticks.

- With the FOMC meeting now in the rear view mirror, the focus for UK markets

will be next week's BoE meeting. Before then, Friday will see the release of

monthly GDP, industrial production, construction output, international trade and

the index of services data for April.