Gilts are trading little changed in....>

GILT SUMMARY: Gilts are trading little changed in subdued volume, having

squeezed higher in the morning but then pare gains in the last hour or so

despite any new developments on Brexit or significant data releases.

- 2-yr Gilt yield is -0.4bp at 0.446%, 5-yr -0.4bp at 0.704%, 10-yr -0.5bp at

1.153% and 30-yr -0.4bp at 1.713% according to tradeweb.

- Gilt future contract opened a few ticks lower, however quickly reversed higher

in light volume as market digested weekend Brexit commentary from Pm Theresa

May, Foreign Secretary Boris Johnson and EU Chief negotiator Michel Barnier.

- May said the government is "proving the doubters wrong" with its Brexit

negotiations and that they would "not be derailed" from securing an "ambitious

deal". While Johnson said he would be penning the case for a "liberal Brexit"

and for the UK to be allowed to discuss free trade deals. However Barnier said

there was "no way" the UK will be able to get a bespoke deal with the EU.

- Brexit cabinet meets today to discuss what type of future relationship they

want with EU, while May will give an update on Brexit talks to MPs later Mon.

- Both swap spreads and breakevens are little changed so far today.