For the time being the market has no...>

GILT SUMMARY: For the time being the market has no further insight on the Brexit

process as PM May operates behind the scenes to devise a new backstop proposal

and drum up support for her Withdrawal Deal. Rumours have circulated today that

the PM could offer financial support to struggling Labour constituencies in a

bid to secure cross-party support in parliament for her Brexit deal.

- Gilt yields have been drifting lower since midday with the longer end

outperforming. Current yield levels: 2-year 0.746%, 10-year 1.218%, 30-year

1.713%. The 2s10s spread has narrowed to 45.8bps from 47.2bps and 2s30s has

traded down to 95.4bps from 96.6bps.

- The Mar-19 gilt future trades at 123.59 near the top of the day's range.

- Inflation breakevens have inched higher with the 5-year benchmark trading at

3.101% up from 3.068%.

- Short sterling futures are 2.5-4.5 ticks higher with whites underperforming. 

- Next up on the data calendar is the Markit Manufacturing PMI series for

January which will be published tomorrow.