- Gilt trading ranges are relatively...>

GILT SUMMARY: - Gilt trading ranges are relatively contained ahead of

parliament's meaningful vote later on today. We expect the result to be

announced around 2030GMT.

- Yields are broadly 1-2bps lower from yesterday's close, with the curve

flattening since early morning. The 2-year yield trades at 0.798% down from a

high of 0.823%, while the 10-year is down to 1.273% from 1.309%. The 2s10s

spread has narrowed to 46.5bps from 47.8bps.

- The Mar-19 gilt future trades at 123.02 near the top of the day's range.

- Inflation breakevens are holding steady with the 5-year benchmark trading at

3.214%.

- Short sterling futures are trading mixed. Reds/Greens up 0.5 ticks.

- Next up on the data calendar will be the December CPI print which will be

published tomorrow. Although consensus expects a slight drop to 2.1% Y/Y from

2.2%, there is scope for a significant downside surprise in light of the weak

eurozone CPI data, falling oil prices through to end-2018 and reports of a

retail washout in December.