Gilts are largely flat as the..........>

GILT SUMMARY: Gilts are largely flat as the countdown begins to a key weekend

for the Brexit process.

- Dec 18 Gilt futures is up 9 ticks at 122.79. The 2-Yr yield is down 1.9bps at

0.75%, 5-Yr is down 2bps at 0.968%, 10-Yr is down 1.8bps at 1.41%, and 30-Yr is

down 1.5bps at 1.952%.

- Short Sterling futures stronger by 1 tick across most of the strip.

- Ex-Brexit minister Raab said this morning that Parliament would likely reject

the withdrawal deal, and that it would be better to Remain in the EU than to

accept PM May`s proposal.

- Spanish PM Sanchez Tweeted Thursday night that 'if there are no changes, we

will veto Brexit' (though Spain cannot veto the deal singlehandedly).

- PM May due to head to Brussels Saturday ahead of crunch meetings culminating

in EU summit on Sunday.

- Thursday night, BOE's Saunders warned that capacity pressures are building in

the economy and rate hikes to return policy to a neutral stance may come faster

than markets have been expecting.