Gilts are trading modestly higher......>

GILT SUMMARY: Gilts are trading modestly higher with the yield curve flattening

having reversed opening losses, supported by block buy in Gilt futures.

- 2-yr Gilt yield is unchanged at 0.220%, 5-yr -0.7bp at 0.487%, 10-yr -0.9bp at

1.067% and 30-yr -1.1bp at 1.734% according to Tradeweb.

- Sep Gilt future opened lower taking cue from fall in US Treasuries after

London close on Friday, but quickly pared losses as markets digested weekend

press reports of the state of Brexit negotiations. 

- UK's Brexit Secretary David Davis tried to convince Brussels to hold trade

talks alongside withdrawal talks, however, there seemed to a rebuttal from some

leaders in Europe that enough progress has not been on the 3 core issues to even

consider starting trade talks.

- 2nd round of Brexit talks are due to start next week and with the UK expected

to release a number of papers this week, they are hoping negotiations can

progress at a faster rate.

- Markets though are subdued ahead of key Jackson Hole conference scheduled for

later this week.