- Gilt yields continue to edge.........>

GILT SUMMARY: - Gilt yields continue to edge higher following the early morning

sell off. The curve has steepeed on the back of the long end underperforming.

- The 2-year benchmark trades at 0.731% up from a morning low of 0.696% while

the 10-year yield is up to 1.408% from 1.360%. 

- The 2s10s spread has widened to 66.8bps from 65.5bps while the 2s30s has

traded up to 111.6bps from 110.3bps.

- The Dec gilt future trades at 122.68 down from 123.15.

- The short sterling futures strip is down 1.0-4.0 ticks. 

- In line with developments in US and Euro area money markets, the implied

probability of a BoE hike next year has been scaled back over the past week. The

probability of at least one hike by the December 2019 meeting is now 66.5%, down

from 77.8% a week ago.

- UK consumer credit data for September was slightly weaker than expected, while

mortgage approvals and lending secured on dwellings marginally beat consensus.