2010.09.2009:20:00UTC+00Gilts slip on Monday on equity prices recovering

• Gilts dipped on Monday due to equity prices recovering and Moody's assurance of AAA rating on Britain
• Lending to UK business fell in July and home loans approvals by banks also fell in August - BOE data
• Fed's meeting is in focus by dealers as chances of quantitative easing is seen
• December gilt future was 19 ticks down at 122.30
• European shares were 0.6 pct higher due to commodity stocks and mergers and acquisition talk.
• 10 yr gilt yields were 1bps higher at 3.14 pct, while the spread over Bunds were unchanged under 68bps

 Quote:

•  "Volumes are very light in Bunds and gilts which is not surprising given the event risk associatied with tomorrow.In gilts, volumes are about a quarter to a third down from where you'd normally expect." - Marc Ostwald, bond strategist at Monument Securities.