Gilts are trading near day's highs,....>

GILT SUMMARY: Gilts are trading near day's highs, with risk aversion picking up

over the course of Friday.

- The Dec 18 Gilt future is up 45 ticks at 121.63, having traded in a range of

121.39-121.66 today.

- 10-Yrs outperforming: 2-Yr yield is down 3.5bps at 0.807%, 5-Yr is down 4.4bps

at 1.1%, 10-Yr is down 4.6bps at 1.519%, and 30-Yr is down 3.2bps at 1.948%.

- Short Sterling futures are stronger, Greens/Blues up 4-5 ticks.

- It could be a big weekend for Brexit developments as next week is eyed for a

breakthrough (though we have heard that one before).

- BBG cited EU diplomats seeing UK desperation as a chance to extract

concessions,which may delay/derail a deal which includes a UK-wide customs pact.

- Domestic obstacles in the way too, with DUP rebelling against PM May`s plan.

- Weak Q3 GDP internals (business investment, drop in imports) and a flat August

and September suggesting UK slowdown, also supporting rates/Gilts.