2-year gilts are 1bp higher today......>

GILT SUMMARY: 2-year gilts are 1bp higher today but 10y yields are largely

unchanged.

- The Bank of England announced their policy update today leaving rates and QE

unchanged as unanimously expected. The Bank are now focused on three potential

Brexit paths - no deal, continued extension and a deal. However, without further

political clarity, markets are failing to react to the BoE.

- On the subject of political clarity, headlines today have said that the

Supreme Court hopes to give a ruling on whether the government proroguing

parliament was legal.

- Other stories have confirmed that the UK has sent "non-papers" to the EU

outlining some of the options the UK government would consider as alternatives

to the Irish backstop. However, the "non-papers" still fall some way short of a

full and detailed proposal.

- Retail sales this morning were disappointing but revisions were decent.

- Gilt futures are up 0.03 today at 132.48 with 10y yields up 0.1bp at 0.641%

and 2y yields up 1.1bp at 0.511%.