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Brexit Deadline Nears

GILT SUMMARY

Gilts have traded firmer today, but there appears to be little concern about the impending deadline for Brexit negotiations informally set by the UK PM.

  • Gilts have traded firmer today with yields up to 2bp lower and the curve bull flattening, mirroring the wider theme among core European sovereign bond markets. Last yields: 2-year -0.0497%, 5-year -0.0584%, 10-year 0.221%, 30-year 0.776%. The 2s30s spread is 2bp narrower.
  • The Dec-20 gilt future trades at 136.08, near the middle of the day's range (L:136.00 / H136.26).
  • Bloomberg reports that UK Prime Minister Boris Johnson will decide whether to continue Brexit negotiations after a meeting with EU leaders on Thursday and Friday, citing a source close to discussions.
  • PM Johnson continues to resist implementing a national breakdown - or circuit breaker - and is instead continues to refer to the recent introduced three-tier system for tightening social restrictions.
  • There are no further UK economic data releases this week.

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