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Gilts opened weaker alongside all of...>

GILT SUMMARY
GILT SUMMARY: Gilts opened weaker alongside all of the other major bond markets
as the threat from the Korean peninsular was downgraded in the minds of the
market.
- The initial drop at the Gilt open was quickly caught as the Bund contract
rallied. Thereafter, the weak UK CPI data gave a further shove higher to the
Gilt contract. 
- Calendar roll activity picked up as banks are generally suggesting that longs
roll early. There isn't much duration difference between the two contracts and
so distortions caused by this are limited.
- The UK has laid out its strategy for the Brexit negotiation, which includes a
transition period inside a customs union. However, it is a wish as opposed to a
certainty that this will eventually occur.
- Gilt prices have surrendered much of their recovered ground in the past hour
as the Bund market has been driven 30 cents lower in very thin trading
conditions. Currently, the 10Y Gilt yield is 2.9bp higher on the day at 1.1%,
with a marginal steepening of the 2-10Y curve.

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