The late morning sell-off in gilts.....>

GILT SUMMARY: The late morning sell-off in gilts picked up steam through the

afternoon session, unwinding some of last week's bull flattening. Stocks have

inched higher and cable is on the front foot. 

- The Sep-20 gilt future trades at 138.04, towards the weaker end of the day's

range (137.43 / 139.106).

- Cash yields are 1-4bp higher with the curve bear steepening. Current yield

levels: 2-year -0.107%, 5-year -0.0545%, 10-year 0.1872%, 30-year 0.6584%. The

2s10s spread is 3bp wider on the day.

- The DMO will tomorrow sell GBP3.25bn of the 0.125% Jan-26 gilt and GBP3.0bn of

the 0.375% Oct-30 gilt. 

- The data calendar is also more lively tomorrow with the release of monthly

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

index of services for May.