Gilts are on the backfoot this.........>

BOND SUMMARY: Gilts are on the backfoot this morning while UST and German curves

have seen smaller moves with the latter two curves also seeing some steepening

in the 2s10s area this morning.

- The main story of the morning regards the leak overnight of the proposal the

UK government will submit to the EU later today. The main features are extra

customs checks, Northern Ireland remaining within single market mechanisms until

2025 before the NI Assembly chooses whether to keep the "two border" system or

align more with the UK. The full legal text has yet to be finalised although

various "sources" reported in the media from the European side have suggested it

will not be acceptable to the EU. PM Johnson is due to speak at around 11:40BST.

- Equities have been under pressure this morning while the only real notable

data has seen the UK construction PMI disappoint. Later today we will hear from

the Fed's Barkin, Harker and Williams while the ADP employment report is the

highlight of the data calendar.

- TY1 futures are up 0-1+ today at 130-22+ with Bund futures down -0.24 at

173.96 and Gilt futures down -0.35 at 134.15.