Gilts have reversed earlier losses.....>

GILT SUMMARY: Gilts have reversed earlier losses after trading at their weakest

levels in several months, mirroring weakness in US Tsys and Bunds.

- The Dec 18 Gilt future is down 14 ticks at 120.56, having traded in a range of

120.42-120.58 today. 10-Yr Gilt yield hit the highest level since mid-February,

at 1.631%, though has since reversed, last up 0.7bps at 1.620%. 

- The 2-Yr yield is up 0.4bps at 0.831%, 5-Yr is up 0.5bps at 1.192%, and 30-Yr

is up 0.2bps at 1.964%.

- Short Sterling is lower, with weakness concentrated in 2020 contracts and

beyond, off 2.0-3.0 ticks.

- On the supply front, the DMO will re-open the 0.125% Aug-48 inflation-linked

Gilt this morning for Stg. 0.8bln.

- Event-wise, opposition Labour Party conference continues today, with possible

Brexit headline-related risk. BOE's Vlieghe speaks at Imperial College with Q&A

at 0940BST.