Gilts are on the back foot led by......>

GILT SUMMARY: Gilts are on the back foot led by the 10-yr part of the yield

curve as newswires report that some form of Brexit transitional deal has been

agreed between the UK and EU. Market now eye David Davis and Michel Barnier

press conference due to start at 1145GMT.

- 2-yr Gilt yield is +2.1bp at 0.831%, 5-yr +2.8bp at 1.164%, 10-yr +3.5bp at

1.469%, 30-yr +1.8bp at 1.817% and 50-yr +1.5bp at 1.598% according to Tradeweb.

- WSJ ran a headline that UK/EU have reached a broad agreement on  Brexit terms,

while Reuters reported an EU diplomat that text on transition, citizen rights

and financial settlement has been agreed, although only some progress had been

made on the Irish boarder and a "backstop" has been agreed. 

- Apart from the Brexit update, markets have been subdued with light flows seen.

In swap space, there appeared to be a receiver of the belly of a Stg59.6k DV01

7Y-10Y-15Y swap b-Fly  

- Breakevens are little changed despite sharp rally in Sterling following the

Brexit update. While swap spreads are tighter across the curve with the 2-yr

-1.4bp at 20.9bps.