Gilts are trading steady to higher.....>

GILT SUMMARY: Gilts are trading steady to higher with the long-end

underperforming and in turn bull steepening the yield curve. The move is seen

influenced by overnight selling and steepening move in US Treasuries and a host

of comments on Brexit. 10-yr Gilt yield is 0.2bp lower at 1.281%.

- With the UST 10-yr yield rising above 2.55% last night Bill Gross from Janus

Henderson declared a "bond bear market confirmed" in a tweet, which seams to be

weighing on sentiment at start of London trade.

- Although Brexit concerns are starting to come to the surface again with the

Financial Times reports that the EU systematically warned UK companies of a

regulatory chill after Brexit back in Nov/Dec, saying that they will not

automatically have access to single market on Mar 29, 2019.

- EU's chief Brexit negotiator Michel Barnier maintained his hard-line stance

over UK banks' access to EU markets, but did appear to leave some room for

manoeuver when talks start. While Hammond and Davis wrote in a guest column in

German paper FAZ say that German UK views not incompatible.

- Swap spreads are mixed, while breakevens are touch wider so far Wednesday.