Gilts look set to close higher after...>

GILT SUMMARY: Gilts look set to close higher after a relative muted Thursday

session with yield curve flattening slightly as long/ultra long-end outperforms

the short-end, on mild risk-off flows amid falls in stocks and renewed Brexit

concerns.

- 2-yr yield is -2.6bp at 0.737%, 5-yr -3.9bp at 1.021%, 10-yr -4.5bp at 1.422%,

30-yr -4.5bp at 1.784% & 50-yr -4.8bp at 1.651% according to Tradeweb

- There was surprisingly little movement in Gilts to the raft of US data that

was released this afternoon and the gilt future remained in a relatively tight

range, until spike higher shortly after 1545BST.

- Renewed fall in stocks led by US semiconductors/tech and a Buzzfeed exclusive

saying that the Brexiteers that remain in the Cabinet look for a harder

"third-way" Canada-plus trade deal with the EU if Chequers proposals fails.

Coupled with comments from Fed Williams combined to push Gilts to session highs

- Earlier markets managed to shrug off a disappointing 5-yr Gilt auction and

remained supported by a dovish sounding Riskbank.

- Short sterling futures are steady to 4 ticks higher, strip flatter