Gilts have weakened Wednesday..........>

GILT SUMMARY: Gilts have weakened Wednesday alongside strengthening equities,

with the BOE meeting looming Thursday.

- The Dec 18 Gilt future is down 41 ticks at 122.41, near lows of 122.37.

- 2-Yr yield is up 3.7bps at 0.759%, 5-Yr is up 4.2bps at 1.024%, 10-Yr is up

4.5bps at 1.444%, and 30-Yr is up 3.3bps at 1.853%.

- Ratings agency S&P triggered a wave of sterling sales after warning Tues aft

that a no deal Brexit would result in a lengthy recession, saying the risk of no

deal has increased to the point where it has become a ratings consideration.

- Fairly limited immediate impact on Gilts, though.

- Short-Sterling trading a little weaker at the far end of the strip ahead of

Thursday`s BOE meeting; Blue futures down 3.0-4.0 ticks.

- UK consumer confidence deteriorated in October for a 2nd month in a row with

GfK's long-running Consumer Confidence Index down a point to -10.

- Meanwhile, BRC data showed UK shop prices ended their 2-month run of inflation

in October, falling by 0.2% y/y after a 0.2% rise in September.

- For info on both data points, see Main Wire at 00:01 GMT, or contact us.