Due to a dearth of UK data and it being all...>

GILTS: Due to a dearth of UK data and it being all quiet on the UK political

front (for now anyway) following resignation of Priti Patel as development

secretary it, has been a rather subdued morning session, however, Gilts have

spiked lower in illiquid trade, taking cue from sharp sell-off in German Bunds,

while 5-yr Gilt supply was also seen weighing. 

- 2yr gilt yield is +1.3bp at 0.457%, 5-yr +2.2bp at 0.707%, 10-yr +3.2bp at

1.244% and 30-yr +2.3bp at 1.811% according to Tradeweb.

- Gilts opened on the back foot as resignation of Priti Patel seamed to calm

political jitters and markets took cue from softer US Treasuries overnight.

While markets seemed to brush off warning on Brexit from BoE Ian McCafferty

saying on LBC radio last night that clarity would be needed early next year to

prevent investment banks shifting jobs from the UK to Europe.

- UK's DMO sold GBP2.75bln Gilt 2023 with tail at 0.2bps unchanged from previous

auction.

- Breakevens are mixed with 10-yr 1bp wider while 5-yr and 30-yr marginally

tighter. 10-yr, 15-yr & 30-yr swap spreads are circa -1.5bp & 2-yr +1.5bp