Gilts are set to close mixed...........>

GILT SUMMARY: Gilts are set to close mixed Thursday, following 2-way action,

with the short-end of the yield curve seen underperforming and therefore

flattening the yield curve. 10-yr Gilt yield is -5bp at 1.371%, while 5-yr is

+0.6bp at 0.798%.

- There is some hope that a Brexit deal could be reached by the end of the year

following comments from Michel Barnier in wake of 5th round of negotiations this

week. Barneir said that "decisive progress" was in our "grasp" within the next 2

months" and that "slowly but surely I will explore ways of getting out of this

deadlock we find ourselves in".

- Earlier Gilts sold off sharply in thin volume on rather false expectations

that progress might have been made at this weeks talks, but quickly recovered

lost ground as Barnier said there is deadlock on discussion on Brexit bill.

- Gilts faded once again though on tick higher in US PPI ex food and energy data

& drop in US jobless claims.

- Breakevens have tightened in the region of 4bp today, while 30-yr swap spreads

have seen the largest move and are 1.6bp tighter.