Gilts are trading lower, but off.......>

GILT SUMMARY: Gilts are trading lower, but off opening session lows, more than

likely helped by a block buy of 2,372 G Z7, as markets look to take profits

following sharp move lower yesterday and this morning.

- 2-yr Gilt yield is +0.3bp at 0.468%, 5-yr +1.3bp at 0.814%, 10-yr +11.8bp at

1.397% and 30-yr +1.3bp at 1.956% according to Tradeweb.

- Gilts opened sharply lower with the 10-year part of the yield curve seen

leading the underperformance which hit a high of 1.428%. Pressure was seen from

US Trump's tax reform plan added with Fed hawkish talk on rates, comments from

BoE Haldane that "nearing a point" for a rate hike and that should not be "a

source of fear" and newswires reports of possible Brexit concession from EU on

transition talks, before market turned around following light buying.

- A 2-day Bank of England 20-year independent conference started, but there was

no mention of monetary policy in Governor carney's welcoming remarks.

- UK Brexit Secretary Davies, said there had been considerable progress at

latest round of talks with EU, but they still disagreed role of ECJ and

settlement bill. While Barnier said "sufficient progress" not yet made.