Gilts have largely reversed earlier....>

GILT SUMMARY: Gilts have largely reversed earlier losses, but have gapped lower

from Wednesday, with further direction likely to be dependent on moves in US

Tsys which have made a massive move lower in the past two sessions.

- The Dec 18 Gilt future is down 65 ticks at 120.44, which is actually near

day`s highs after trading in a range of 120.11-120.56 today.

- Significant bear steepening in the curve: 2-Yr yield up 1.9bps at 0.854%, 5-Yr

up 4.8bps at 1.21%, 10-Yr up 5.8bps at 1.633%, 30-Yr up 4.1bps at 1.975%.

- Short Sterling futures have had their worst day in a while, with Greens and

Reds down 6-7 ticks (albeit were down 9-10 at one point).

- Some optimism on a Brexit deal being reached by end-November also weighed,

with European Council President Turk saying EU was still ready to offer the UK a

`Canada plus-plus-plus` deal, following on from reports this morning that PM May

is drawing up plans to rush a Brexit deal through Parliament.

- A fairly quiet week for data concludes with Halifax House Prices and Q2 Unit

Labour Costs Friday.