Gilts have reversed opening move.......>

GILT SUMMARY: Gilts have reversed opening move higher and are now trading

modestly lower, albeit in very light volume, as markets prepare for yet another

Brexit press conference that is more than likely to confirm that very little

progress has been made and therefore cannot move onto trade talks.

- 2-yr Gilt yield is +1.0bp at 0.471%, 5-yr +1.3bp at 0.805%, 10-yr +1.2bp at

1.388% and 30-yr +0.8bp at 1.959% according to Tradeweb.

- Gilts opened modestly higher, supported by overnight move in US Treasuries

following dovish undertones in FOMC minutes and then squeezed higher, once again

led by USTs following a block buy in TYZ7.

- Sentiment does not seem to favour UK markets at the moment as Sterling also

drops back towards it overnight lows against the USD and Euro, despite the fall

in Gilts.

- There was little market reaction to BoE credit condition survey that showed

availability of credit falling.

-  UK Breakevens are sharply tighter with 5-yr and 10-yr circa -3bp, while the

largest move in swap spreads is seen in the 30-yr at -1.6bps.