Gilts have recovered some early........>

GILT SUMMARY: Gilts have recovered some early losses late Weds afternoon but

remain weighed down by apparent optimism that 'no deal' Brexit will be avoided.

- The Mar 19 Gilt future is down 49 ticks at 122.71, near the middle of today's

range of 122.41-123.04 today.

- 10-Yr Gilts underperforming on the cash curve: the 2-Yr yield is up 1.4bps at

0.819%, 5-Yr is up 3.4bps at 0.957%, 10-Yr is up 5.3bps at 1.311%, and 30-Yr is

up 3bps at 1.813%.

- No-confidence vote against PM May's government expected at 1900GMT. Firm

conviction all around that it will fail, but the path beyond remains unclear.

- Dec CPI at 2.1% Y/Y came in well below BoE forecast of 2.4%.

- Gov Carney - the only BoE speaker this week - said little new on monetary

policy to the Treasury Select Committee, painting a picture of a cooling global

economy (see MNI POLICY: BOE Carney Sees Global Deceleration As China Cools).

- Looking to Thursday, data includes BoE Credit/Bank survey at 0930GMT.