Gilts have partly reversed Monday's....>

GILT SUMMARY: Gilts have partly reversed Monday's sharp gains on word of a

'possible' Brexit deal in the coming days, but no tangible developments of note.

- The Dec 18 Gilt future is down 31 ticks at 122.08, having traded in a range of

122.03-122.24 so far.

- The 2-Yr yield is up 1.7bps at 0.771%, 5-Yr is up 1.9bps at 1.047%, 10-Yr is

up 2.2bps at 1.474%, and 30-Yr is up 1.7bps at 1.928%.

- Short Sterling a little weaker, Greens/Blues off 2-3 ticks.

- No real developments on the Brexit front. Cab Sec Lidington said there could

be a deal in next 24 or 48 hours, 'still possible but not at all definite'.

- PM May's Cabinet won't have Brexit deal proposal put to them today.

- The UK labour report for September (0930GMT) anticipates unemployment holding

steady at 4.0% and core earnings remaining at August's 3.1% 3M Y/Y.

- However a jump in headline earnings to 3.0% 3M Y/Y from 2.7% previously is

expected, according to the MNI median and appears to be down to base effects.