While monthly GDP data released this...>

GILT SUMMARY: While monthly GDP data released this morning show a contraction

for August, on a 3m/3m basis economic growth has accelerated to 0.3% (vs 0.1%

consensus). 

- Speaking at an event unveiling the new GBP20 note, BoE Governor Mark Carney

stated that the underlying pace of economic growth in the UK is a bit softer and

further reiterated that the central bank is ready for any Brexit outcome. 

- The Dec-19 gilt future trades at 134.18, down 44 ticks from Wednesday's close

and 9 ticks off the day's low; L-H: 134.09-134.67.

- Gilts have sold off with yields 3-4bps higher on the day. Cash yields (Last /

1d chg / L..H): 2Y (0.3914% / +2.8bp / 0.3708%...0.4018%); 5Y (0.2901% / +3.3bp

/ 0.2668%...0.2989%); 10Y (0.4946% / +3.6bp / 0.4692%...0.503%); 30Y (0.9967% /

+3.2bp / 0.9718%...1.0022%).2s10s (9.7bp / 0.7bp / 7.8bp..10bp); 2s30s (59.9bp /

0.5bp / 59.2bp..60.1bp).

- The short sterling futures strip has steepened: W (- 2.0/2.5 ticks); R (-

2.5/3.0 ticks); G (- 2.5/3.0 ticks); B (- 3.0/4.0 ticks).