For most of the day Gilt yields were...>

GILT SUMMARY: For most of the day Gilt yields were higher, mainly owing to

President Trump's tax reform plans speech last night.

- There were contrasting views of the Brexit talks between David Davis (going

well) and EU's Michel Barnier (could take "weeks or months for sufficient Brexit

progress"). 

- However, Brexit is more of an issue for Sterling than the Gilt market and the

FX market concluded that a softer Brexit was looking more likely and jumped from

1.337 to 1.343. 

- Going into the close, the yield on the 10-year yield is at 1.384%, which is

near to the Wednesday evening close.

- In the welcoming remarks given by BoE Governor Mark Carney, at the conference

marking 20 years of BoE independence of the central bank, made clear that that

the effects of Brexit to the UK economy were still significant. He further

talked about aiding the economy through this tough period of Brexit.

- Gilt swap spreads dipped to new recent lows. The G Z7 invoice spread touched

4bp in the session -- low but 2016 saw 10Y Gilts above swaps.