A rollercoaster week for Gilts ended...>

GILT SUMMARY: A rollercoaster week for Gilts ended with a spike higher as PM May

delivered a defiant speech that left the impression that Brexit talks with the

EU had hit an impasse.

- The Dec 18 Gilt future is up 43 ticks at 121.26, having traded in a range of

120.77-121.35 today. 

- There has been a rally across the curve in a bull steepening action, with the

2-Yr yield down 2.3bps at 0.808%, 5-Yr down 3.6bps at 1.142%, 10-Yr down 3.8bps

at 1.547%, and 30-Yr down 3.3bps at 1.892%.

- With a no-deal Brexit very much back in play (if it had ever left play,

considering the lack of a breakthrough at the EU summit this week), rate hike

expectations have fallen considerably.

- Market pricing for next BoE hike has moved this week from Aug 2019, to Jun

2019, back to Aug.

- DMO announced timing for syndication of 1.625% 2071 Gilt in the week

commencing 8 October 2018.

- Next week, BOE speakers include Vlieghe, Haldane, Ramsden, and Carney.