Gilts have opened significantly........>

GILT SUMMARY: Gilts have opened significantly lower led by the 6bp rise in the

10-yr Gilt yield, weighed by this morning's announcement that the first phase

Brexit talks have reached "sufficient progress" and talks will move onto a

transition deal and a new trade agreement once it is rubber stamped by the 27

leaders of the EU next week. 2s/10s is 1.8bp steeper and 10s/30s 1.4bp flatter.

- EU President Juncker announced this morning that a breakthrough on Brexit

talks had been made and that the EU will recommend "sufficient progress" has

been made and that EU leaders will make final decision next week. While PM May

said that the "hard won agreement" was in everyone's interests and that a

specific solution had been found for Northern Ireland. 

- However the devil is in the detail of the agreement and the DUP have already

said that it could vote against the final Brexit deal and that the Cabinet and

UK parliament still had to debate nature of any regulatory alignment.

- Looking ahead UK industrial production and trade balance data is released at

0930GMT with consensus seeing production flat on the month and trade deficit

rising to Stg3bln. Then attention will turn to key US non-farm payrolls.