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TRADING LOWER

GILT SUMMARY

The sell-off in gilts has continued through the afternoon session with the longer-end underperforming.

  • The Sep-30 gilt future trades at 136.37 towards the bottom end of the day's range and 14 ticks off the low.
  • The gilt curve has bear steepened with the 2s30s spread 3bp wider on the day.
  • Last yield levels: 2-year -0.0048%, 5-year -0.0071%, 10-year 0.2471%, 30-year 0.7891%.
  • The data calendar has not been exhausted for the week following the release of the RICS house price balance for July (12% vs -5% consensus).
  • Next week will see the publication of CPI, retail sales and public finance data for July and preliminary PMI prints for August.

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