VIEW: Goldman Sachs notes that "UK rates.......>

STIR: VIEW: Goldman Sachs notes that "UK rates continue to rally as the

distribution of rates shift lower. This week, chief economist Haldane stated

that the BoE's review into negative rates and the effective lower bound will

continue into the second half of 2020. We think the review is likely to be

delivered at either the August or November MPR, which suggests the timing is

tight for a negative rate risk scenario in 2020. As a result, GBP OIS 1y1y still

offers a better risk/reward for received positions, despite the recent rally.

And even though our economists do not expect the BoE to cut rates into negative

territory, we think receiving the UK front-end remains an effective hedge

against duration shorts or credit longs."