This afternoon's ECB decision and......>

GILT SUMMARY: This afternoon's ECB decision and press conference has dominated

the market. Comments from Christine Lagarde, particularly around the ECB's

response to widening bond spreads, triggered a sharp sell off in Italian BTPs

and amplified volatility in European govvies.

- The Mar-20 gilt future trades at 138.92, up 85 ticks from Wednesday's close

and 13 ticks off the day's high; L-H: 138.65-139.05.

- Gilts have broadly rallied with yields 1-5bps lower on the day. Cash yields

(Last / 1d chg / L..H): 2Y (0.1697% / +2.1bp / 0.1149%...0.1705%); 5Y (0.2047% /

+0.6bp / 0.1513%...0.2055%); 10Y (0.2506% / -4.1bp / 0.2079%...0.2521%); 30Y

(0.6305% / -5.4bp / 0.5834%...0.6308%).

- The curve has flattened: 2s10s (6.7bp / -6.3bp / 6bp..9.5bp); 2s30s (44.5bp /

-7.6bp / 41.5bp..47.3bp).

- Short sterling futures have broadly sold off with whites underperforming: W (-

8.0/12.0 ticks); R (- 4.0/7.0 ticks); G (- 2.0/2.5 ticks); B (- 2.5/3.5 ticks).