2010.09.2314:35:00UTC+00Gilt Futures Edges To Two-week High

News:

• Gilt futures edged to a two-week high, but heavily underperformed Bunds after Germany said it would cut Q4 issuance 
• December gilt futures settled 21 ticks higher at 124.24
• Spreads versus Bunds for 10-year gilt yields widened 4 bps to 67 bps, after striking an eight-month low of 59.8 bps on Wednesday
• Gilt moves were much more modest on Thursday, with yields falling 1 bps to 2.96 pct after a 14 bps drop on Wednesday
• Gilt futures hit a session high after US Treasuries rallied on US initial jobless claims data
• Demand was strong when the UK DMO sold 550mn pounds of 2027 index-linked gilts with bids coming up to 2.23 times the volume available