Gilts have extended their sell-off.....>

GILT SUMMARY: Gilts have extended their sell-off in the last 3-minutes or so as

NY traders have got to their desk, led by the ultra long-end of the yield curve

as markets weigh up implications of a possible trade war, although the EU has

been given a temporary exemption on US tariffs.

- 2-yr Gilt yield is +1.4bp at 0.895%, 5-yr +1.8bp at 1.191%, 10-yr +2.7bp at

1.444%, 30-yr +5.2bp at 1.773% and 50-yr +5.7bp at 1.532% according to Tradeweb.

- Having tightened for 12 session in a row and by 31.5bps, 2s/30s is finally

widening today with the spread 3.1bps higher to 87.4bps.

- There has been a dearth of UK data today, however at the EU summit in Brussels

they rubber stamp the Brexit transition deal and agreed negotiation position for

trade talks. Also coming up shortly the BoE releases its quarterly bulletin at

1200GMT and then  BoE Vlieghe speaks in Birmingham at 1230GMT.

- Attention will also be on US data that includes durable goods and new home

sales this afternoon, any comments from the Trump administration on trade

tariffs and speeches from Fed Bostic, Kaplan and Kashkari.

_ 5-yr & 10-yr breakevens are 3bp wider and swap spreads little changed.