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There was only really one story on.....>

GILT SUMMARY
GILT SUMMARY: There was only really one story on Wednesday, which was the
risk-off move following the belligerent rhetoric in North Korea. 
- The Gilt market reaction was not out of line with other markets as the 10Y UK
yield dropped 5.7bp on the day. The Bund-Gilt spread moved sideways all day
despite more significant reactions in European equity markets than in the UK and
despite the Euro coming in for quite heavy selling.
- All the usual safe-havens did well: gold, swissie, yen and global core bond
markets.
- 30Y Gilts made some (about 1bp) outperformance of the swap curve, otherwise
swap spreads were fairly stable. 
- The Bank of England Agents report showed some evidence of labour market
shortages, with modest hiring intentions.

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