Further Brexit Setbacks

Brexit negotiations have been temporarily suspended after one of the EU's negotiators tested positive for coronavirus.

• Given the narrowing window of opportunity to secure a deal, the latest setback raises further concerns about the ability of both sides to avoid a cliff edge no-deal given that core issues around fishing rights and level playing field provisions remain to be resolved.
• Gilts have lacked direction through the session and trade marginally firmer on the day with the curve a touch flatter.
• Last yields: 2-year -0.0289%, 5-year 0.0103, 10-year 0.3262%, 30-year 0.9210%.
• The Dec-20 gilt future trades at 134.89, near the middle of the day's range (L: 134.74 / H: 135.11).
• Short sterling futures are flat/0.5 ticks lower in whites/reds/greens and 0.5 ticks higher in blues.
• Looking ahead, tomorrow will see the release public finance and retail sales data for October.