Gilts have been bid at the open with...>

GILT SUMMARY: Gilts have been bid at the open with 2y yields falling 0.9bp and

10y yields falling 1.3bp. This means 2y gilt yields have moved in line with UST

(and more than Schatz) while 10y gilt yields have moved less than Bunds but more

than USTs.

- It is also worth noting that the gilt curve has moved back to almost exactly

the same levels as mid-afternoon on Friday.

- The UK calendar today is pretty light with CBI industrial trends due at

11:00GMT and the BoE's Broadbent due to speak at 9:30GMT.

- Brexit headlines continue to rumble on in the background with the FT reporting

that Theresa May has told ministers that they will be expected to keep a no deal

Brexit on the table in any vote next week. Labour continues to favour a customs

union but there is also increasing speculation that they could also favour the

Cooper amendment to try to rule out a no deal Brexit.