European Economy: Gilts
Gilts have followed Bunds lower in opening trade. The domestic agenda is lean today and direction is taken from the eurozone, after yesterday’s sharp gains to Gilts, following the far less hawkish than expected BoE Inflation Report. The September 10-year Gilt future is down 16 ticks to 108.82. The 2-year cash yield is up 1 bp to 4.51% and the 10-year yield is up 2 bp to 4.62%. FTSE 100 opened 1% higher.