Gilts are trading lower led by the.....>

GILT SUMMARY: Gilts are trading lower led by the 5-yr to 10-yr part of the yield

curve, but nowhere near as bad as the last few days, as market wind down ahead

of long Christmas weekend holiday and then month/quarter/year end next week.

- 2-yr Gilt yield is +1.5bp at 0.483%, 5-yr +2.3bp at 0.781%, 10-yr +2.6bp at

1.276% and 30-yr +1.9bp at 1.844%.

- Asian overnight news was limited to the BoJ leaving policy and yield curve

control target unchanged. While on the domestic political front, there was more

bad news for PM May as her most senior member of the Cabinet and most trusted

ally was forced to resign. 

- Gilts still opened marginally lower though, as markets likely continued to

feel slightly upbeat on Brexit following BoE carney's comments on foreign bank

regulation that is seen as making it easier for them to remain in the City.

- UK public sector borrowing for November ticked higher versus October as

expected, however, year-to-date net borrowing was the lowest since 2007

supported by rise in VAT receipts.

- Swap spreads are touch wider expect for 2Y, while breakevens are circa +1.5bp