Gilts opened lower this morning in.....>

GILT SUMMARY: Gilts opened lower this morning in the London session and

continued to head south for much of the day. The move was a response of the US

Senate vote regarding the budget resolution. The 10Y gilt yield is currently

trading at 1.324% near intraday highs.

- President of the European Council Donald Tusk tweeted earlier that "Brexit

conclusions adopted. Leaders green-light internal EU27 preparations for 2nd

phase." Although, the tweet from Tusk provided a glimmer of positivity in the

largely deadlocked talks, UK PM Theresa May admitted in a speech earlier that

there is still some way to go in terms of the negotiations.

- There was a 5k Gilt block soon after the open, likely a sale.   

- 2-yr Gilt yield is +2.4bp at 0.0.435%, 5-yr +3.9bp at 0.766%, 10-yr +5.4bp at

1.321% and 30-yr +4.9bp at 1.892% according to Tradeweb.

- Swap spreads are trading mixed with the 2Y spread almost unchanged. All of the

movement in nominal yields sits within the real yield space and breakevens are

almost unchanged.