Gilts have strengthened in a global....>

GILT SUMMARY: Gilts have strengthened in a global flight to safety, alongside

rising fears over the Italian budget boosting core EGBs and US Tsys.

- The Dec 18 Gilt future is up 38 ticks at 121.3, having hit a high of 121.43.

The cash curve is bull flattening, with the 2-Yr yield down 3bps at 0.805%, 5-Yr

down 4bps at 1.14%, and 10-Yr down 5bps at 1.538%.

- More headlines out of the Conservative Party conference include DUP members

reiterating opposition to any border in the Irish Sea (as reported by Sky News),

following on from yesterday`s reports that the UK was considering doing just

that.

- Short Sterling futures are a little higher, with Blue contracts up 3-4 ticks,

mirroring the bull flattening of the Gilt curve.

- Little UK data today. At 0730GMT is the UK September construction PMI. After a

reading of 52.9 in August, the MNI median points to a slight lowering in the

score to 52.7, still above the argued 52.5 change/no change mark.