UK Risk Sentiment Receives Boost

Having initially opened lower, gilts have lacked direction with yields drifting slightly lower.

• News on the continued easing of lockdown restrictions, coupled with the perceived reduction in risk around a second Scottish independence referendum after the SNP failed to get a parliamentary majority in Scottish elections, have contributed to a positive shift in sentiment.
• Gilt cash yields are broadly 1-2bp higher. Last yields: 2-year 0.0336%, 5-year 0.3199%, 10-year 0.7893%, 30-year 1.3326%.
• The Jun 21 gilt future trades at 128.23, 3 ticks off the day's high.
• The BoE purchased GBP1.147bn of short-dated gilts with offer-to-cover of 3.35x.
• Looking ahead, Wednesday sees the release of the preliminary Q1 GDP pint alongside monthly data for industrial production, construction output, index of services and international trade for March.