Gilts are trading mixed ahead of NY....>

GILT SUMMARY: Gilts are trading mixed ahead of NY session with the 5-yr to 10-y

sector seen squeezing higher, while the short-end and ultra long-end edges lower

and in-turn pivoting the yield curve slightly. Volumes have been light once

again with little seen to direct markets.

- 2-yr Gilt yield is +0.7bp at 0.749%, 5-yr -0.3bp at 1.045%, 10-yr -0.7bp at

1.312%, 30-yr +0.4bp at 1.768% & 50-yr +0.4bp at 1.616% according to Tradeweb.

- Once again Sep Gilt future looked to be influenced by the movement in Sterling

as the future rose steadily as the Pound dropped against the US Dollar and the

Euro on continued no-deal Brexit concerns. Sterling recovered though and this

led to the Gilt future fading earlier gains to now trade at 122.90

- There was a Business Insider article reporting that EU member state were

considering offering the UK major concessions that would allow the UK to stay

within a single market for goods. However this is unlikely to fly with Barneir

and UK parliament.

- Short sterling strip has faded some of its earlier move higher and are now

steady to 2 ticks higher, with strip touch flatter