Gilts have moved steadily lower over...>

GILT SUMMARY: Gilts have moved steadily lower over the course of Friday,

reversing about half of Thursday's Brexit-related gain.

- The Dec 18 Gilt future is down 52 ticks at 122.66, having traded in a range of

122.57-123.20 today.

- Our POV today ('BREXIT SHORT SQUEEZE') noted short covering in Gilt futures

was prevalent Thursday amid Brexit volatility - but structural shorts remain.

- The 2-Yr yield is up 2.7bps at 0.732%, 5-Yr is up 3.7bps at 0.96%, 10-Yr is up

5bps at 1.423%, and 30-Yr is up 3.3bps at 1.961%.

- Short Sterling futures have weakened as well, Green contracts off the most,

down 6 ticks.

- Brexit-related speculation has calmed down somewhat with the decision of

several prominent Brexiteer ministers to stay in Cabinet, while the movement

within the Conservative Party to oust PM May appears to have lost some steam.

- All to play for next week though, with special EU summit on 25th on the Brexit

deal, and in the interim, a possible confidence vote in May.