Gilts have reversed early gains but....>

GILT SUMMARY: Gilts have reversed early gains but remain higher Wednesday, with

equities and GBP steady ahead of UK CPI and PM May's address to EU leaders.

- Dec18 futures have retreated to day's lows after an early rise, last up 17

ticks at 120.80, high of 120.93.

- Curve a bit flatter: 2-Yr yield is up 0.2bps at 0.819%, 5-Yr is down 0.6bps at

1.162%, 10-Yr is down 1bps at 1.599%, and 30-Yr is down 1.5bps at 1.981%.

- Short Sterling likewise, with Blue contracts outperforming, up 2-3 ticks.

- PM May due to address EU leaders in Brussels around 1700BST re Brexit.

- The UK CPI reading (0930BST) is anticipated to come down from a six-month high

of 2.7% to 2.6% in September. MNI analysis points to a continued theme of air

and sea fares being particularly elevated in August and tempering in September.

- Some BOE events of note: 0930BST sees FPC's record of the Oct 3 meeting;

Cunliffe re-appointment hearing at 1415BST; Broadbent presents at Brookings Inst

in Washington at 1800BST.