Gilts are trading little changed.......>

GILT SUMMARY: Gilts are trading little changed having spent the majority of

Monday morning trade in negative territory as geo-political tension underpin the

recovery. Yield curve is modestly flatter as ultra long-end outperforms the rest

of the curve.

- 2-yr Gilt yield is -0.1bp at 0.736%, 5-yr -0.3bp at 0.989%, 10-yr +0.1bp at

1.234%, 30-yr -0.3bp at 1.687% & 50-yr -1.1bp at 1.544% according to Tradeweb.

- Gilts opened lower, taking cue from fall in US Treasuries and German Bunds as

markets digested the war of words between Iran and US, conclusions from the G20

summit, possibility of changes to BoJ monetary policy and latest Brexit news.

- Brexit secretary Dominic Raab told The Sunday Telegraph that he would make the

vast payment formally conditional on the EU "fulfilling its side of the

bargain". While new Foreign Secretary Jeremy Hunt said that UK will not "blink

in talks in EU".

- Short sterling futures are 1 to 2 ticks lower with red and greens leading the

underperformance. While breakevens are steady to 0.5bp wider.

- Attention turns to US homes sales data and then comments from BoE Broadbent