Gilts are trading back near session....>

GILT SUMMARY: Gilts are trading back near session lows, with yields only just

below the open. An absence of official data releases today has underpinned the

quiet spell.

- The market appears to have shrugged off Prime Minister Theresa May's plan to

keep the UK inside the EU customs union for longer than initially planned. With

little else to move the meter, the cloud of uncertainty over Italian politics

provides some underlying pressure.

- 2-yr Gilt yield is +3bp at 0.852%, 5-yr +4.1bp at 1.225%, 10-yr +4.3bp at

1.547%, 30-yr +2.3bp at 1.925%, 50-yr +1.8bp at 1.705%.

- Short sterling futures have traded lower. The longer end sold off the

furthest. The Dec-20 contract is down 5 ticks.

- The 5-year breakeven yield has edged down to 3.003%, below the open, with the

10-year trading at 3.100%. This is despite Brent crude oil touching $80/bbl.