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EGB/GILT: Reflecting the shift in.....>

BOND SUMMARY
BOND SUMMARY: EGB/GILT: Reflecting  the shift in power over Brexit negotiations
from Boris Johnson's team to parliament, MPs voted Wednesday evening to force
the government to publish the secret Yellowhammer papers which detail official
planning for a no-deal scenario. The documents warn of the risk of public
disorder, disruption to medicine supplies and higher food and fuel prices.
- Gilts trade firmer from the open with yields 1-2bp lower. Current yield
levels: 2-year 0.476%, 5-year 0.436%, 10-year 0.623%, 30-year 1.097%.
- EGB curves have bull flattened this morning ahead of the pivotal ECB meeting.
Markets broadly expect a 10bp deposit rate cut, deposit tiering and a
~40bln/month QE programme.  
- The 30-year benchmark is outperforming the rally in bunds this morning with
the yield down 4bp on the day.
- OATs are similarly seeing decent demand at the long end. The 2s30s spread has
narrowed 3bp.
- The BTP rally has been relatively contained ahead of this morning's auction.

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