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The selloff in gilts reversed course...>

GILT SUMMARY: The selloff in gilts reversed course by mid-morning while the
curve has continued to steepen.
- The 2-year benchmark gilt trades at 0.917% down from a morning high of 0.9196%
and the 10-year trades at a yield of 1.718% from 1.733%.
- The 2s10s spread has widened to 80.3bps from 79.3bps and the 2s30s has pushed
up to 116.6bps from 114.3bps.
- The Dec Gilt future trades at 119.6 up from 119.5.
- Breakeven inflation rates have inched lower with the 5-year benchmark down to
3.216% from 3.232%.
- The short sterling futures strip is 2.0-3.0 ticks lower.
- There is mounting speculation that the UK and EU are close to making a
breakthrough on negotiations, but there is yet no substantive confirmation of
- GDP and index of services data for August was broadly in line with consensus,
with a slight beat on industrial production (1.0%  Y/Y vs 1.3% survey).

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