Gilts are trading sharply lower for....>

GILT SUMMARY: Gilts are trading sharply lower for the third consecutive day with

yield curve shifting around 2.0bps higher across the curve, albeit in light

illiquid trade, as PM May agrees to a compromise on EU Withdrawal Bill which

allows it to progress to Report Stage. 10-yr Gilt yield is 2.1bp higher at

1.271%.

- PM May agreed to a last minute amendment to the Bill which said the government

would allow a delay in Brexit in 'exceptional circumstances', appeasing Tory

rebels and allowing the Bill to progress to the next stage. 

- There was some embarrassment for PM May however, as she had to sack her most

senior member of the Cabinet and trusted ally Damian Green, following

"inaccurate statements".

- Markets are likely to remain subdued despite release of November public sector

borrowing numbers, as traders continue to wind down operations ahead of long

Christmas holiday weekend and then month/quarter/year end.

- Consensus is for borrowing ex banks to rise slightly to Stg9bln from Stg8bln

in October, however the numbers are not seen impacting markets