BOND SUMMARY: Groundhog day. -Main....>

BOND SUMMARY: BOND SUMMARY: Groundhog day. 

-Main global driver was once again Brexit in early trading, which will continue

well into the weekend ahead. -GBP reversed gains and then some. 

-Firstly: Peston: Downing St AGAIN downbeat there will be real. Government

source telling me: "Chances of a deal are low. DUP seem unlikely to support

anything that's negotiable". This follows the meeting with DUP last night. To be

clear, as I said last night, this could be final... 

-Then: Mid morning: EU says Brexit deal is impossible unless UK moves. 

-Gilts spiked and are 80 ticks up on the day, dragging to a lesser extent EGBs

and US Treasuries, with Bunds up 22 and TYZ9 13 up on the day. 

-The biggest moves have of course been in FX and particularly the Pound, with

the GBPUSD printing a 1.2658 low and now trading back around the 1.27 handle. 

-Focus is squarely on Brexit all the way to the EU Summit and Saturday's

meeting, when today, Brexit Sec confirms Boris Johnson will write letter to the

EU on Saturday if no deal has been agreed. This is under the terms of the Benn

Act and would mean extension until Jan 31 2020.