The highlight of the day was the.......>

GILT SUMMARY: The highlight of the day was the syndicated launch of the 10-year

0.375% Oct-30 gilt. This is the first time the UK DMO has sold a medium-dated

gilt via syndication and the operation was very successful. Books closed in

excess of GBP82bln with GBP12bln sold. This is about treble the size of most

syndications seen over the past couple of years.

- BOE Deputy Governor Broadbent spoke on CNBC this morning saying that the Bank

would not rule out any measures, including negative rates, although he did also

qualify this by saying the Bank would have to weigh up the downside risks to

negative rates and whether they do more harm than good.

- Chancellor Rishi Sunak has confirmed that the furlough scheme will remain in

place until the end of October with employers able to bring people back to work

part time from August and contribute more to the scheme at that point.

- Gilt futs rallying toward end of the session, while yields are down across the

curve. Jun futures (G) up 28 ticks at 137.64 (L: 137.04 / H: 137.49), with 2-Yr

yield down 2.8bps at -0.022%, 5-Yr down 2.5bps at 0.066%, 10-Yr down 2.8bps at

0.241%, and 30-Yr down 2.1bps at 0.573%.