Gilts are trading lower as well but....>

GILT SUMMARY: Gilts are trading lower as well but prices appear a little more

stable than either German Bunds and US Treasuries having traded in a tight range

with little seen to direct markets. Curve seen pivoting around 10-yr sector

- 2-yr Gilt yield is +1.5bp at 0.748%, 5-yr +1.9bp at 1.108%, 10-yr +2.7bp at

1.409%, 30-yr +1.8bp at 1.867% & 50-yr +0.9bp at 1.689% according to Tradeweb.

- Brexit concerns are rising once again with newswires last night reporting a

open argument between Brexit secretary David Davis and PM Theresa May over the

contents of temporary customs proposals or "Brexit backstop" which were expected

to be published today. 

- So far there has been no resignations and Davis and May had a constructive

discussion on the Brexit backstop this morning, according to newswire reports,

but details of the proposal remains unclear. 

- Following some hawkish comments from BoE McCafferty last night, will e

interesting to see if known dove Ramsden in a speech later today can row back

some of this bearishness seen in the markets in last couple of days.

- Swap spreads & breakevens little changed, but Sstg strip touch steeper