Gilts are trading sharply lower led....>

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

curve following breakthrough in Brexit negotiations that is likely to see the 27

leaders of the EU approve 'sufficient progress' has been made next week,

allowing talks to move onto phase 2 -- a 2-yr transitional deal and future trade

agreement. 

- 10-yr Gilt yield is 7.2bp higher at 1.322% according to Tradeweb, while 2s/10s

is 3.4bp steeper and 10s/30s 1.4bp flatter.

- Before opening of EU/LDN markets EU President Juncker announced a breakthrough

on Brexit talks and the EU will recommend "sufficient progress" has been made.

While PM May said that the "hard won agreement" was in everyone's interests and

that a specific solution had been found for Northern Ireland.

- However the devil is in the detail of the agreement and the DUP have already

said that it could vote against the final Brexit deal.

- UK data was mixed and had little impact on markets who's attention is now of

US non-farm payroll data. Breakevens are tighter led by -3.7bp in 5-yr, while

swap spreads are tighter led by the -2.9bp in 2-yr.