Gilts continue to trade in a...........>

GILT SUMMARY: Gilts continue to trade in a relatively tight range, with the

market seemingly weighing the conflicting statements from EU Brexit negotiation

chief Michel Barnier (indicating the prospect of a special trade relationship

with the UK) and the UK's Brexit Secretary Dominic Raab (highlighting risks of

no deal).

- The gilt curve has flattened slightly since the open with the 2s10s spread

narrowing to 71.6bpos from 72.6bps and the 2s30s pushing down to 103.9bps from

104.8bps. 

- Inflation breakevens are little changed on the day. 

- Short sterling futures are around 1.0 tick lower. Two decent sized short

sterling option blocks went through earlier in the day. 

- Consumer credit and mortgage approvals data was a touch weaker than expected.

The last block of data for this week will be the GfK Consumer Confidence

indicator and the Nationwide House Price Index due out tomorrow.