Gilts opened lower and have pretty.....>

GILT SUMMARY: Gilts opened lower and have pretty much stayed there since with

little seen to move them out of their morning stupor. 2-yr to 10-yr part of the

yield curve is weighed the most with 10s/30s 0.8bp tighter

- 2-yr Gilt yield is +1.9bp at 0.475%, 5-yr +1.9bps at 0.747%, 10-yr +1.8bp at

1.27% and 30-yr +0.9bp at 1.823% according to Tradeweb.

- Gilts seen pressured by more optimistic comments from EU Juncker that there is

some progress being made on Brexit negotiations, but will need to see by Dec 4

if enough progress has been made to move talks onto the next stage.

- There was a small drop in the number of mortgage approvals in October compared

to September, however re-mortgage approvals more than made up for the short

fall.

- Flow wise it has been very quiet with the exception of Gilt future calendar

roll that has jumped into life today with over 160k block and a further 65k

traded on screen. 

- Swap spreads are little changed with exception of 2-yr which is 1.7bp tighter,

while 5-yr & 10-yr breakevens are 1bp wider, but 30-yr unchanged