Brexit talks between Westminster and...>

GILT SUMMARY: Brexit talks between Westminster and Brussels are breaking down in

acrimony. The FT earlier reported that allies close to Boris Johnson have stated

that a Brexit deal is as good as dead. Meanwhile, President of the European

Council Donald Tusk has accused PM Johnson of playing a 'stupid blame game'.

- Striking a more constructive note, Irish Foreign Minister Simon Coveney has

stated that while the UK Brexit deal was a step forward, more work is needed. 

- The Dec-19 gilt future trades at 135.09, up 33 ticks from Monday's close and

13 ticks off the day's high; L-H: 134.51-135.22.

- Gilts have rallied with yields 2-3bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.318% / -2.4bp / 0.3096%...0.3225%); 5Y (0.2182% / -2.9bp /

0.2113%...0.2198%); 10Y (0.4172% / -3.1bp / 0.4102%...0.4186%); 30Y (0.9265% /

-2bp / 0.9225%...0.9304%).

- Short sterling futures have broadly rallied with whites & blues outperforming:

W (+ 2.5/3.5 ticks); R (+ 2.5/3.0 ticks); G (+ 2.5/3.0 ticks); B (+ 2.5/3.5

ticks).