Gilts have opened Friday on the back...>

GILT SUMMARY: Gilts have opened Friday on the back foot, with 10-Yr yields

hitting the highest levels since Jan 2016, and GBP rising to multi-month highs.

- Increasing optimism that a Brexit deal may be nearing (not for the first time)

helping weaken Gilts, Dec 18 future down 40 ticks at 119.78, just off low of

119.68 today.

- Some bear steepening: 2-Yr yield is up 1.6bps at 0.902%, 5-Yr is up 2.7bps at

1.271%, 10-Yr is up 3.3bps at 1.702%, and 30-Yr is up 3bps at 2.032%.

- Reuters Sources story this morning that 'EU Brexit Negotiators See UK Divorce

Deal As Very Close', and Ireland's European Affairs Minister saying 'lots of

common ground on border issue' have helped risk appetite.

- Short Sterling futures remain under pressure, with most weakness further down

the strip, Green and Blue contracts off 5-6 ticks.

- Modest amount of data today, Halifax House Prices at 0830BST and Q2 Unit

Labour Costs at 0930BST - US nonfarms later are the main event.