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Andy Chaytor and Anna Karina Asbjorn of Nomura...>

UK
UK: Andy Chaytor and Anna Karina Asbjorn of Nomura say that with the EU agreeing
that "sufficient progress" has been made on Brexit talks "makes a hard Brexit
less likely.
- They go on to say that agreeing a 2-yr transitional deal in Q1 2018 would mean
Brexit will be 3-yrs away and "that should reduce the market's sensitivity to
Brexit to a large extent".
- "In terms of markets we have seen yields push up towards the top end of recent
ranges on this news today. We think this can grind further and be given an extra
boost by hawkish risks we see around the MPC next week. We continue to expect to
see UK yields push higher into year-end and position for this via steepeners out
to 10y and short vs. euro area."

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