A sedate trading session came to.......>

GILT SUMMARY: A sedate trading session came to life in the afternoon, with weak

US CPI initially boosting Gilts, followed by upbeat Brexit news that pushed Gilt

yields to multi-month highs. BOE was a non-event.

- The Dec8 Gilt future is off 20 ticks at 121.68 (Hi:121.93, Lo:121.48).

- Most of the damage came after a Bloomberg sources story around 1430BST that

the UK had agreed to share key Irish Sea trade data with the EU in order to end

the impasse over checks at the Irish border post-Brexit.

- However, some of those losses were pared around 1545BST, no trigger seen.

- Cash Gilt yields touched highest levels since May, with 2-Yr hitting 0.824%

(up 3bps; last up 1.4bps at 0.808%) and 10-Yr hitting 1.525% (up 4.1bps; last up

2.4bps at 1.508%, which would be the highest close since May.

- Short Sterling sold off, esp for contracts beyond 2019. Jun20-Jun22 contracts

off 2.0-4.0 ticks.

- BOE Thursday was a bit of a non-event. BOE MPC saw the economy evolving much

as expected, though with the usual downside risks cited (ie protectionism and

Brexit).