Gilts have strengthened overall........>

GILT SUMMARY: Gilts have strengthened overall Monday, but wobbled as PM May

provided a recap of the breakdown of Brexit negotiations over the weekend.

- The Dec 18 Gilt future is up 27 ticks at 120.73, but has been fairly choppy

Monday, having traded in a range of 120.59-120.84. 

- Modest curve flattening: the 2-Yr yield is down 1.9bps at 0.817%, 5-Yr down

2.8bps at 1.169%, 10-Yr down 2.5bps at 1.608%, and 30-Yr down 1.8bps at 2.018%.

- Short Sterling futures up 2-3 ticks across the strip.

- Gilt Dec18 futures off 9-10 ticks vs prior to PM May`s statement in Parliament

but nothing new in her comments really.

- May reiterated that the govt was against a transitional customs arrangement

with the EU that would become permanent, and against a customs border in the

Irish Sea. Reiterated that deal was achievable, and did not believe UK and EU

were far apart, despite EU seeking `backstop to the backstop`.

- Sounded less confrontational than her post-Salzburg statement, at least, which

maintained the risk-on tone.

- UK data flow picks up Tuesday with Aug/Sep employment market data.