lttpips, page-11

Bad UK data....

From GFT
[GILTS] took the pretty dreadful UK trade balance data fairly calmly initially with prices edging a bit higher, but then accelerating thereafter. The visible trade bal at -Gbp8062bn (vs estimates of -Gbp7.0bn) is fast approaching the record -Gbp8284bn from Sep 2007, whilst Jun PPI data was mixed. At first, Gilts put on 6 ticks or so to 120.85, but then quickly jumped to 120.92 (up 4 ticks on the day) & 2 ticks above the previous session peak at 120.90. FTSE took offence to the trade data, dropping around 9 points to dip into negative territory for the first time today (-0.4 at 5105.1 vs +30.3 points at best). The [SHORT STG STRIP] added a tick here & there to flat/-1 tick from flat-2 ticks beforehand, while [STG] slipped on the headlines before recovering and now looking soft again.