Gilts looks set to close lower,........>

GILT SUMMARY: Gilts looks set to close lower, yield curve steeper with long-end

weighed by disappointing 30-yr Gilt re-opening auction and news that the Irish

border issue is now only the only stumbling block to EU agreeing 'sufficient

progress' on Brexit talks have been made.

- 2-yr Gilt yield is +1.8bp 0.515%, 5-yr +2.1bp at 0.760%, 10-yr +2.7bp at

1.257% and 30-yr +3.3bp at 1.831% according to Tradeweb.

- Gilts sold off just before 1000GMT and sterling spiked higher, likely on back

of BBC News story that UK ministers were 'absolutely optimistic' of Brexit

border deal. Later on a Gilt future block of 5,539 contracts was put through

which could of explained move lower. Sharp rise in tail at the 30-yr Gilt

re-opening auction then led to Gilt future spiking lower by further 21 ticks.

- Gilts hit session low at start of NY session but then pared gains at the same

time a smallish 10Y-30Y swap flattener went through, only for more selling to

arise following news that issues on ECJ had been resolved.

- Breakevens are 0.6bp to 1.7bp wider despite sterling squeezing higher, while

2-yr, and 30-yr and above swap spreads are around 2bp tighter.