Early Gilt gains faded somewhat in.....>

GILT SUMMARY: Early Gilt gains faded somewhat in the afternoon as a glimmer of

expectation for a near-term Brexit deal re-emerged.

- The Dec 18 Gilt future is up 48 ticks at 122.30, having traded in a range of

122.06-122.47 today.

- The belly of the curve is outperforming, with the 2-Yr yield down 3.6bps at

0.747%, 5-Yr down 4.7bps at 1.025%, 10-Yr down 4.3bps at 1.448%, and 30-Yr down

2bps at 1.904%.

- Short Sterling futures strip is up but about 2 ticks off day`s highs;

Jun20-Sep22 contracts up 5-6 ticks.

- Continuing the conflicting headlines of the past few days, Gilts weakened

after EU chief negotiator Barnier reported saying the parameters of a deal have

been reached, but an agreement is not quite done yet.

- There is increasing talk of a Brexit meeting in Dec rather than Nov, with a

breakthrough needed by Weds this week for a Nov summit.

- No key UK data Monday; labour market figures await Tuesday.