Gilts have pared some of Thursday`s....>

GILT SUMMARY: Gilts have pared some of Thursday`s substantial gains as risk

appetite has revived slightly Friday - but Brexit remains front and centre.

- The Dec 18 Gilt future is down 26 ticks at 122.92, having traded in a range of

122.82-123.17.

- The 2-Yr yield is up 1.8bps at 0.723%, 5-Yr is up 2.5bps at 0.948%, 10-Yr is

up 2.3bps at 1.396%, and 30-Yr is up 1.9bps at 1.947%.

- Short Sterling futures have retraced some of Thursday`s rise, Jun20through

Mar22 contracts down 4 ticks.

- Awaiting news of further letters from Conservatives calling for a leadership

contest vs PM May, who defended the Brexit withdrawal deal on radio earlier.

- May was slightly ambiguous on the topic of a `free vote` allowing Cabinet

members to vote against the withdrawal agreement, but signalled that she would

not permit it.

- Confidence and supply agreement for the May government put into question by N

Irish DUP; any further Cabinet resignations will be eyed as well.

- No key data or BOE speakers Friday - Brexit the only show in town.