Gilts are trading steady to slightly...>

GILT SUMMARY: Gilts are trading steady to slightly lower ahead of NY session,

with little data seen to direct markets. Yield curve is ever so slightly steeper

as the long-end underperforms.

- 2-yr Gilt yield is +0.2bp at 0.461%, 5-yr +0.1bp at 0.731%, 10-yr steady at

1.25% and 30-yr +0.6bp at 1.803%.

- Gilts open slightly higher, more than likely on the back of Brexit uncertainty

as EU President Tusk said it will be an uphill struggle for the UK to meet

'enough progress' to move talks onto the next stage with the Irish boarder being

a particular contentious issue.

- 30-yr breakeven rate widened quickly this morning as last weeks tightening

move, supported by large IL Gilt redemption and coupon payments, faded. However

they have seen given up some of the widening move to now be +0.9bp at 3.437%.

- Meanwhile swap spreads are modestly tighter across the board with the 15-yr

seen leading the move.

- Markets might see some reaction to BoE Haldane comments this afternoon as he

makes a speech on education and communication strategy at 1430GMT