Gilts look set to end Monday steady....>

GILT SUMMARY: Gilts look set to end Monday steady to lower with the 5-yr to

10-yr sector underperforming, weighed by sharp sell-off in US Treasuries and

German Bunds, while the ultra-long and to some extent the very short-end

remained anchored for much of the session.

- 2-yr Gilt yield is -0.2bp at 0.625%, 5-yr +1.2% at 0.985%, 10-yr +1.6bp at

1.46%, 30-yr -0.6bp at 1.894% and 50-yr -0.7bp at 1.679%.

- Gilts have fallen less than both US Treasuries and German Bunds though, seen

underpinned by heightened domestic political concerns which has also weighed on

Sterling. 

- Eyes once again on Brexit with the EU publishing it's terms on a Brexit

transition deal, while cracks within the Tory seam to be getting wider over the

what type of deal the UK should have. Brexit secretary David Davis has hinted

that the UK could accept EU terms, but with the ability to scrutinise new laws

if they hurt UK interests.

- Fall in sterling has supported widening in UK breakevens led by 2bp rise in

the 10-yr spread. Swap spreads are mixed but little changed.