Gilts are slipping lower into start....>

GILT SUMMARY: Gilts are slipping lower into start of NY session having reversed

opening flight-to-quality bid as geo-political risks in North Korea fades, and

traders shrug off Brexit concerns.

- 2-yr Gilt yield is +0.2bp at 0.184%, 5-yr +0.1bp at 0.428%, 10-yr +0.3bp at

1.022% and 30-yr Gilt +0.4bp at 1.691% according to Tradeweb.

- Dec Gilt future opened higher taking cue from late rally in US Treasuries on

continued geo-political risk in N.Korea, however, this faded quickly and the

future dropped to unchanged levels within an hour of trading.

- UK parliament returned from summer recess on Tuesday with the main highlight

being David Davies' update on Brexit negotiations (or lack of) to the House of

Commons. Davies repeated that there was larges differences on the issue of

financial settlement and would not be held to ransom, but some "concrete

progress" had been made in other areas.

- Gilts spiked higher but then quickly dropped to fresh session lows as markets

picked up on what turned out to be an erroneous tweet from the British

Geological Society saying there was an earthquake in North Korea.