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EGB/GILTs: Former UK Justice...........>

BOND SUMMARY
BOND SUMMARY: EGB/GILTs: Former UK Justice Secretary David Gauke has warned that
a no-deal Brexit is still a risk in the event of a Conservative majority. The
statement attracted a strong rebuke from leading Tory Brexiteer Michael Gove.
- UK October CPI came in a touch below expectations (1.5% Y/Y vs 1.6% survey)
- Gilts have rallied this morning and the curve has flattened. Current yield
levels: 2-year 0.534%, 5-year 0.5298%, 10-year 0.758%, 30-year 1.266%.
- Core EGB curves have similarly bull flattened. The 2s30s bund spread has
narrowed ~5bp on the day.
- Current French OAT yields: 2-year -0.592%, 5-year -0.358%, 10-year 0.017%,
30-year 0.792%.
- BTPs have traded weaker, with the short-end underperforming. The curve is
2-3bp flatter.

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