Gilts crashing lower at start of.......>

GILT SUMMARY: Gilts crashing lower at start of Thursday's session led by 3bp

rise in 10-yr yield as London markets react to a mildly hawkish FOMC meeting

last night, upping the inflation outlook slightly and pretty much confirming a

rate hike is on the cards at the next FOMC meeting in March.

- While in the UK, there was a surprise rise in house prices in January

according to latest figures from the Nationwide, however there could be a clash

at Brexit transition talks following comments from PM May on EU citizen rights.

- May has said the UK will fight EU demands in the deal that gives residency

rights to EU citizens during the transition phase of Brexit, saying that there

should be a difference to those arriving after March 2019 and the ones that

already are in the UK.

- Looking ahead there is only UK manufacturing PMI released at 0930GMT with

consensus seeing a mild rise in sentiment to 56.5 in January from 56.3 in

December. 

- Breakevens have gapped wider led by 1.4bp rise in the 10-yr, while the 2-yr

swap spread has tightened by 1.5bps to 25bps.