Gilts are trading steady to lower,.....>

GILT SUMMARY: Gilts are trading steady to lower, but moving only slightly from

Thursday's close as markets continue to digest the latest round of Brexit talks

and the likelihood of talks progressing to the next stage, following a glimmer

of hope from EU's Chief negotiator Michel Barnier.

- Juncker though reminded the UK that the Brexit process will take longer than

it thinks dashing some of those hopes and a sudden fall in sterling led to Gilts

bouncing off session lows.

- 2-yr Gilt yield is unch at 0.471%, 5-yr +1.2bp at 0.817%, 10-yr +0.9bp at

1.387% and 30-yr +0.5bp at 1.949% according to Tradeweb.  

- Gilts opened little changed but then spiked higher, taking cue rom sharp spike

in German Bunds, however, quickly reversed gains and traded lower as markets

built up some hope of Brexit at least moving onto talks about a transition

agreement and sterling move higher vs USD and Euro.

- Both swap spreads and breakevens are little changed Friday with attention now

seen turning to key US inflation and retail sales data for September