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.