Gilts bounced off midday lows and......>

GILT SUMMARY: Gilts bounced off midday lows and look set to close mixed with

yield curve flatter as ultra long-end outperforms in light illiquid trade, with

many traders seen extending Thursday's Thanksgiving holiday.

- 2-yr Gilt yield is +1.1bp at 0.467%, 5-yr +1.0bps at 0.738%, 10-yr +0.7bp at

1.259% and 30-yr -0.4bp at 1.810% according to Tradeweb.

- Earlier Gilts opened lower and traded pretty much sideways for the rest of the

morning session, keeping in a very tight range, seen pressured by more

optimistic comments from EU Juncker that there is some progress being made on

Brexit negotiations, but will need to see by Dec 4 if enough progress has been

made to move talks onto the next stage.

- Gilts pared losses in London afternoon session though, taking cue from mild

recovery in US Treasuries, but no real direction was taken.

- There was a significant pick up in the Gilt Dec/Mar future roll though with

over 190k being blocked and a further 133k being traded on screen.

- Swap spreads are marginally tighter with exception of 5-yr, while 5-yr & 10-yr

breakevens are 0.5bp wider, but 30-yr 0.5bp tighter