Gilts have traded fairly steadily......>

GILT SUMMARY: Gilts have traded fairly steadily since mid-morning after an early

sell-off, as no-deal Brexit risks were priced in.

- The Mar 19 Gilt future is down 27 ticks at 122.92, having traded in a range of

122.77-123.30 today.

- Some bear steepening seen in the curve, with 2-Yr yield up 2.3bps at 0.754%,

5-Yr up 3.5bps at 0.91%, 10-Yr up 3.6bps at 1.317%, 30-Yr up 0.3bps at 1.924%.

- Main theme has been no-deal Brexit risks diminishing, judging from both

financial and betting markets-see POV:MARKETS BETTING AGAINST BREXIT at 1008GMT.

- Futures markets now pricing in faster rate hikes between Jun19 and Jun20 in

the UK than Eurozone for the first time since the Italy crisis in the summer,

and to the greatest extent since mid-2017 (see POV above).

- Release of the government's legal advice didn't really move the needle. Still

just 7% chance of withdrawal deal passing on Dec 11 (per Betfair implied odds).

- Seemingly subdued trading day owing in large part to the US market's absence

on a day of mourning for former Pres GHW Bush. 

- Thursday sees BoE's Ramsden speaking at 1000GMT.