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There has been little change in........>

GILT SUMMARY: There has been little change in Gilts since the sharp opening seen
this morning with only  mixed UK retail sales data to digest before release of
Bank of England monetary policy decision at noon. Yield curve is flatter as
long/ultra long-end outperforms.
- 2-yr Gilt yield is -0.8bp at 0.918%, 5-yr -2.9bp at 1.23%, 10-yr -4.3bp at
1.488%, 30-yr -4.8bp at 1.761% and 50-yr -4.9bp at 1.523% according to Tradeweb.
- Gilts pared some of their sharp opening move higher as markets digested the
FOMC monetary policy decision, change in dot plots and dovish undertone of Fed
Powell's press conference.
- Gilts were near session lows when UK retail sales crossed the wires and after
a brief pause squeezed higher as an upside surprise was offset by downward
revisions. total sales rose 0.6% m/m in Feb more than the 0.4% m/m expected,
however Jan's 0.1% m/m rise was revised to -0.2% m/m.
- Attention now of BoE rate decision. Majority of analysts expect policy to
remain on hold, but some are seeing 2 dissenters calling for an immediate rate
hike. 5-yr breakevens and 2-yr swap spreads are 1.7bp & 2bp wider respectively.

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