Gilts look to end the week with a......>

GILT SUMMARY: Gilts look to end the week with a rally, ahead of crunch Brexit

talks between the UK and EU in Brussels this weekend.

- Having rallied steadily through the day, the Dec 18 Gilt future is up 44 ticks

at 123.14, (range of 122.61-123.20 today).

- 10-Yr Gilts have outperformed the rest of the curve: 2-Yr yield is down 3.3bps

at 0.736%, 5-Yr is down 4.5bps at 0.943%, 10-Yr is down 5.3bps at 1.375%, and

30-Yr is down 3.9bps at 1.928%.

- The Gilt rally has been the mirror image of oil prices (Brent Crude off 5.8%

at $58.96), whose drop is reducing inflation expectations globally.

- MNI sources story pointing to an ECB increasingly concerned by signs of

slowing growth ahead of the Dec 13 meeting also contributing to dovish tone.

- BOE Saunders' hawkish-leaning comments late Thursday failed to land a blow;

Short-Sterling futures up 4-5 ticks from 2020 and beyond.

- Brexit the obvious focus over the weekend;PM May heading to Brussels Saturday.

- Next week sees BoE publish bank stress tests on Wednesday and present the

economic impact of different Brexit scenarios on Thursday.