Gilts have traded largely without......>

GILT SUMMARY: Gilts have traded largely without direction Monday, with very

limited reaction to fissures in the opposition Labour Party.

- Mar 19 Gilt futures are up 2 ticks at 124.10, trading within a tight 21-tick

range all day (123.99-124.20).

- Cash curve is trading mixed, with a bit of steepening as the short end has

outperformed. 2-Yr yield is down 1bps at 0.725%, 5-Yr is down 0.1bps at 0.812%,

10-Yr is up 0.2bps at 1.162%, and 30-Yr is down 0.3bps at 1.677%.

- As price action indicates and as our FX team colleagues note, there has been

little market reaction to the defection of 7 Labour MPs to a new independent

group (see STERLING POV: LABOUR SPLIT SEEN AS NO GAME CHANGER FOR GBP).

- Unclear how this split will impact Brexit if at all. EU`s Barnier reiterated

today that Brussels was not open to renegotiating the withdrawal agreement, but

was open to a more ambitious permanent customs union among other proposals.

- Attention turns to Jan unemployment data out Tuesday morning, which looks to

be the week`s UK data highlight.