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- The short end of the gilt curve......>

GILT SUMMARY
GILT SUMMARY: - The short end of the gilt curve has weakened this morning and
the longer end has rallied modestly. The curve is slightly flatter.
- The 2-year benchmark gilt trades at 0.734% up from 0.721% while the 10-year
yield has edged down to 1.417% from 1.425%.
- The 2s10s spread has narrowed to 67.7bps from a high of 68.97bps.
- The Dec gilt future trades at 122.58 up from a morning low of 122.49.
- Short sterling futures are flat in the whites and up 2.0 ticks in the reds
through blues.
- We have seen some short sterling option flow in the early session with the
most notable being: OLG9 98.62/50 1x1.5 ps ppr pays 1.25 for 8k.
- There are no major economic data releases this morning.   

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