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Apart from the initial sell-off seen...>

GILT SUMMARY
GILT SUMMARY: Apart from the initial sell-off seen at the start of London trade
due to the easing in trade tensions between US and EU, Gilts have not moved very
much with little data or official speakers seen to direct markets. The 10-yr to
50-yr sector is leading the move lower and in-turn bear steepening the curve.
- 2-yr Gilt yield is +0.5bp at 0.765%, 5-yr +1.4bp at 1.035%, 10-yr +2.1bp at
1.289%, 30-yr +2bp at 1.724% and 50-yr +1.9bp at 1.557% according to Tradeweb.
- Latest Brexit talks come to a close today and there could be comments from
either Barnier and or Raab on any progress, if any, has been made. It follows a
Bloomberg story this morning that said British officials are considering
allowing the EU to impose its market regulations on Northern Ireland, while the
rest of the U.K. breaks away after Brexit.
- Short sterling futures are trading lower, strip steeper as blue contracts are
2 to 3 ticks lower. Earlier, markets reported decent buying in the front end of
the strip with Mar9, Jun9 and Sep9 contracts being bought in circa 40k.
- Breakevens are a touch wider, while majority of swap spreads are modestly
tighter.

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