Gilts are settling lower toward the....>

GILT SUMMARY: Gilts are settling lower toward the end of a session highlighted

by Brexit headlines temporarily spiking yields higher.

- The Dec 18 Gilt future fell 33 ticks around 1340BST on a Bloomberg sources

story saying that the U.K. is set to compromise with the EU by allowing goods to

be checked between Britain and Northern Ireland.

- Those losses were pared, however, with Brexit secretary Raab insisting that

under no circumstances would the UK have two separate customs regimes. Dec18 is

now down 11 ticks at 120.83, having traded in a range of 120.58-120.99 today.

- The Gilt curve has bear steepened, with the 2-Yr yield up 0.7bps at 0.831%,

5-Yr up 1bps at 1.177%, 10-Yr up 1.5bps at 1.588%, and 30-Yr up 1.6bps at

1.931%.

- Short Sterling futures are a little weaker, with most contracts down 1.0 tick.

- Tuesday will see BoE speakers at a macroeconomics conference in London:

highlights include Haldane at 0945BST and Haskel at 1135BST.