Gilts are recovering from a drop at....>

GILT SUMMARY: Gilts are recovering from a drop at the Friday morning open,

alongside a stabilisation in global equities.

- The Dec 18 Gilt future is down 1 tick at 120.03 but near day's highs of

120.04.

- The 2-Yr yield is up 0.4bps at 0.877%, 5-Yr is up 0.5bps at 1.247%, 10-Yr is

up 0.6bps at 1.68%, and 30-Yr is unchanged at 2.074%.

- Short Sterling is fairly flat across the strip, no contract having moved more

than a tick.

- GBP is a little firmer (up 0.2% vs both EUR and USD), while FTSE is up 0.5%,

still hovering above the key 7,000 level.

- Brexit news overnight is that PM May's cabinet is predictably divided over a

plan to keep the UK in the EU customs union post-Brexit; Guido Fawkes website

reports May will make a public statement later that UK will not be 'trapped

permanently in a customs union in any circumstances'.

- No UK data out today, and indeed no key data out until Tuesday when we get

employment figures for Aug/Sep.