Gilts have traded sideways through.....>

GILT SUMMARY: Gilts have traded sideways through the morning after opening lower

on reports that the DUP may be about to side with PM May's deal on Jan 29

providing that the backstop is time limited. However the chief EU negotiator

Barnier backstop has repeatedly said that the backstop is not up for negotiable.

- Chancellor Hammond has suggested that the Jan 29 date for the (next)

meaningful vote is not "high noon" for the UK, though Tory backbencher Nick

Bowles has labelled this "dangerously complement". 

- If the cross party amendment submitted by Yvette Cooper and Nick Bowles does

not pass an extension to Article 50 lies at the mercy of May.

- The Mar-19 Gilt future is down 8 ticks at 123.1, having traded in a range of

122.91-123.21 today.

- The curve has steepened by 5bps between the 2yr and 5yr sections: 2yr yield up

0.8bps at 0.778%, 5yr yield up 1.3bps at 0.921%. 

The 5s10s is flat on the day, with the 10s30s 1.2bps flatter: 10yr yield up

1.3bps at 1.291%, 30yr yield up 0.1 bps at 1.762%.        

- UK mortgage approval fell in Dec to 38,779 Vs 39205 in Nov.