- Gilts have traded sideways during....>

GILT SUMMARY: - Gilts have traded sideways during the afternoon session, having

initially sold off from the open. After  Work and Pensions Secretary Amber Rudd

indicated that a second referendum was 'plausible', the Brexit headlines today

have been thin on the ground. The rhetoric on no-deal planning, which has been

ratcheted up in Westminster and Brussels, remains the dominant theme

underpinning market direction.

- The Bank of England kept policy unchanged at today's MPC meeting,

unsurprisingly citing heightened uncertainty around Brexit.

- The 2-year gilt yield trades at 0.714%, near the highs of the day, while the

10-year trades a 1.246%, in the middle of the day's range.

- The very long-end of the curve has continued to flatten with the 2s30s spread

pushing down to 105.1bps from a high of 108.0bps.

- Inflation breakevens have edged lower throughout the day, with the 5-year

benchmark trading at 3.105% down from 3.164%.

- The short sterling futures strip is broadly 1.0-2.5 ticks higher.