EGBs/GILTS: The UK's Brexit............>

BOND SUMMARY: EGBs/GILTS: The UK's Brexit negotiators arrive in Brussels today

with some speculation that PM Boris Johnson could be persuaded to accept a

Northern Ireland only backstop. This was previously offered by the EU but

rejected by former PM Theresa May. 

- Gilts have traded weaker from the open with yields 2-3bp higher. Current yield

levels: 2-year 0.494%, 5-year 0.456%, 10-year 0.659%, 30-year 1.145%.

- The European data calendar is light today with just the final Portugal CPI

print for August. 

- EGB yields have drifted lower with Italy underperforming.

- Bund yields are 1-2bp higher with the 30-year weighing. The very long-end of

the curve is marginally steeper.

- The 5-year BTP benchmark yield is up 5bp on the day and underperforming the

curve. Current yield levels: 2-year -0.269%, 5-year 0.402%, 10-year 1.043%,

30-year 2.176%.

- Portugal will come to market later this morning with a tap of 10- and 15-year

PGBs for E1.0-1.25bln. Italy will also be selling E6.5bln in 12-month BOTs.