Gilts have opened sharply lower,.......>

GILT SUMMARY: Gilts have opened sharply lower, reversing Friday's late surge

higher induced by Michel Fylnn's plea, as US tax reform bill gets passed by the

Senate and looks to makes its way through Congress by year-end. Hopes on Brexit

agreement today after reports that a deal is 90% there also weighs. UK 10-yr

Gilt yield is 4.9bp higher at 1.276%.

- Markets attention will be very much on PM Theresa May's lunch meeting with

Juncker and if 'sufficient progress' has been made on European citizen rights,

divorce bill and the Irish border so that Brexit talks can move onto a

transition agreement and future trade deal.

- Noises coming from the EU is that a deal is nearly there, however there are

still concerns on the Irish border issue with Ireland saying a deal has not been

made yet. While there are issues still to be clarified on the role of the EJC in

any transition period and on future trade agreement.

- Todays meeting in Brussels is being seen as crucial and would be a significant

blow to PM May if there is no progression on the Brexit talks this afternoon.

Stakes are high!