Gilts and core EGBs are trading........>

BOND SUMMARY: Gilts and core EGBs are trading weaker to open November as risk

appetite continues to pick up, and the Bank of England decision eyed later.

- The Dec 18 Bund future is down 47 ticks at 159.79, on the lows (range of

159.79-160.27 today). Periphery EGBs are stronger in a risk-on move, BTP

futuresup 68 ticks at 122.32, and spreads/Bunds down sharply.

- Meanwhile the Dec 18 Gilt future is down 44 ticks at 121.97, like Bunds on the

low, having traded in a range of 121.97-122.22 today.

- Rate futures weaker, especially Short Sterling, off 4-5 ticks across the strip

(positive Brexit deal news cited), and ahead of BOE MPC decision at midday GMT.

- With MNI PINCH suggesting that markets are pricing only a 50% chance of a rate

hike by the November 2019 meeting, we believe that there is decent risk/reward

in positioning for a more hawkish report (see POV email/bullet yesterday).

- UK Oct Manuf PMI due out at 0930GMT as well (expected to ease to 53.0 from

53.8 in Sep).

- Trade in European bond markets subdued due to holidays across the region (All

Saints' Day).