Despite the UK government's............>

GILT SUMMARY: Despite the UK government's confidence in both the validity of its

Brexit plan and the potential for Westminster MPs to back it, the European

Parliament has warned that the proposals would not form the basis for an

agreement.

- Irish Prime Minister Leo Varadkar has welcomed efforts by PM Johnson to secure

a deal, but has also warned that the proposals fall short in a number of areas.

- The Dec-19 gilt future trades at 134.71, up 50 ticks from Wednesday's close

and 22 ticks off the day's high; L-H: 134.31-134.93.

- Gilts have rallied with yields 3-5bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.342% / -3.8bp / 0.3301%...0.3695%); 5Y (0.2519% / -4bp /

0.238%...0.2817%); 10Y (0.4511% / -5bp / 0.4399%...0.4843%); 30Y (0.9506% /

-3.4bp / 0.939%...0.9813%).

-2s10s (10.3bp / -1.1bp / 10.3bp..11.2bp); 2s30s (60.3bp / 0.9bp /

59.6bp..60.8bp).

- Short sterling futures have broadly rallied with reds outperforming: W (+

2.0/5.0 ticks); R (+ 4.5/5.0 ticks); G (+ 3.5/4.5 ticks); B (+ 3.0/4.0 ticks).