Gilts look set to close mixed after....>

GILT SUMMARY: Gilts look set to close mixed after the long-end reverses earlier

losses but the short-end, especially the 5-yr sector remains weighed, as mild

risk-off sentiment unfolds following fall in European/US equities.

- 5s/30s has flattened by 3.3bps as markets continue to see BoE raising rates

this year and next weighing on the short end of the curve, while the longer-end

remains well bid.

- 2-yr Gilt yield is +1.8bp at 0.893%, 5-yr +2.8bp at 1.247%, 10-yr +0.8bp at

1.548%, 30-yr -0.8bp at 1.933% and 50-yr -1.7bp at 1.727% according to Tradeweb.

- There has been a dearth of UK data today so attention throughout the day has

been on moves in the US Treasury and equity markets. There were some comments

from Brexit Secretary David Davis whilst appearing at a Select committee, but

gave very little away on current UK/EU negotiations apart from that a free trade

agreement was "overwhelmingly probable".

- Breakevens have edged higher led by the 1.2bp move in 5-yr, while swap spreads

are steady to higher with 15-yr and 30-yr circa 2.5bp wider.