EGB/GILT SUMMARY: A subdued start......>

BOND SUMMARY: EGB/GILT SUMMARY: A subdued start this afternoon, until that is, a

Brexit story hit our screens later in the day. 

-Bund were sitting where they started this morning, with

unchanged & flat on the day against the Bund.

- THEN, EU, U.K. Negotiators Said to Be Closing In on Draft Brexit Deal (bbg) 

-U.K. and European Union negotiators in Brussels are closing in on a draft with

optimism that there will be a breakthrough before the end of Tuesday, two EU

officials said.

-GBPUSD spiked and Gilts collapsed through the 132.33-132.11 gap and extended

further as short term long play, bailed out, providing downside momentum to

print a 131.64 low. -EGB's and Bund have sold off rapidly led by the UK curve..

- Bund futures are down -0.65 today at 171.93 with BTP futures down -0.37 at

144.34 and OAT futures down -0.49 at 168.46.

- Gilt futures are down -0.68 today at 131.86 with 10y yields up 6.8bp at 0.704%

and 2y yields up 4.8bp at 0.545%.