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Gilts are squeezing higher Friday......>

GILT SUMMARY
GILT SUMMARY: Gilts are squeezing higher Friday morning as there is fresh doubt
on there being some form of agreement on the Northern Ireland/Ireland border
issue before PM May and EU Juncker meeting on Monday, deadline for EU seeing if
there has been "sufficient progress" in Brexit talks. 10-yr Gilt yield is 1.5bp
lower at 1.314%.
- The UK Committee for Exiting the EU have said that it is not possible to see
how the border issue in Ireland can be resolved after Brexit, casting doubt that
a way forward could be found ahead of crucial EU leaders Summit in 2-weeks time.
While Ireland are asking the UK to agree "wording" to avoid a hard border.
- The only piece of UK data today will be release of manufacturing PMI for
November at 0930GMT, with consensus seeing a slight pick up in sentiment to 56.5
from 56.3 in October.
- UK breakevens are steady this morning following two days of sharp tightening
moves, especially in the 5-yr sector which has fallen by 10bps. While swap
spreads are mixed with the 2-yr 0.7bp wider and 30-yr 1.2bp tighter.

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