Gilts are trading lower and close to...>

GILT SUMMARY: Gilts are trading lower and close to intra-day lows as 10-yr Gilt

supply and hopes of a Brexit breakthrough weigh on sentiment.

- 2-yr gilt yield is +0.8bp at 0.490%, 5-yr +1.3bp at 0.762%, 10-yr +1.7bp at

1.306% and 30-yr +1.2bp at 1.875% according to Tradeweb.

- Gilts opened little changed, but then drifted lower as The Sun newspaper said

PM May is preparing to increase Brexit divorce bill offer to the EU in December

to kick start next round of talks. Upcoming 10-yr Gilt supply was also seen

weighing on sentiment.

- Dec Gilt future extended losses as retail sales edged slightly higher than

expected with total sales rising 0.3% in October and then dropped to session low

despite decent set of results for the 10-yr Gilt re-opening auction with demand

higher and tail tighter. Gilts then remained in bottom end of the day's range as

Downing Street spokesman did not deny The Sun story.

- Both swap spreads and breakevens are marginally tighter but lack direction.

- Up next Mark Carney, Ben Broadbent, Jon Cunliffe, Jo Place, Dave Ramsden, Sam

Woods all appear at an economic forum at St George's Hall Liverpool at 1400GMT.