Gilts have drifted lower this morning.........>

GILTS: Gilts have drifted lower this morning despite Michel Barnier saying that

a key part of the Chequers plan is unworkable, weighed instead by a more

conciliatory tone from the US on trade with the EU. 10-yr gilt yield is 1.1bp

higher at 1.292% with yield curve seen shifting higher.

- The EU's chief negotiator has ruled out allowing the UK to collect customs

duties on its behalf, saying that it could not delegate "excises duty collection

to a non-member". Although both RAAB and Barnier said that progress had been

made, "obstacles" remain in being able to reach a deal by October.

- With a dearth of UK data or official speakers scheduled for today attention is

on advance US Q2 GDP which everyone seems to be getting very excited about.

- Short sterling futures are steady to 1 tick lower with the exception of Dec18

contract which is bucking the trend and has rallied by 1 tick.