Gilts pretty much drifted sideways,....>

GILT SUMMARY: Gilts pretty much drifted sideways, apart from the very short end,

in London afternoon trade, but remained supported by weak Sterling amid no-deal

Brexit concerns, soft equities and fall in crude oil. Yield curve is flatter as

2-yr remains slightly lower but long-end edges higher.

- 2-yr Gilt yield is +0.9bp at 0.743%, 5-yr -0.5bp at 1.048%, 10-yr -1.4bp at

1.319%, 30-yr -0.3bp at 1.764% & 50-yr -0.2bp at 1.613% according to Tradeweb.

- Euro-Sterling broke above 0.90 level just before midday which underpinned bid

in Sep Gilt future and then coupled with a reversal in higher BTPs ticked to

session high of 122.92, before sellers entered the market pushing the future

down to trade at 122.84 currently.

- Bloomberg ran a story that there will be a cabinet meeting at beginning of Sep

to discuss a no-deal Brexit, while the political row over Tory MP Boris Johnson

comments in a newspaper article heated up.

- Earlier gilts pared opening gains as markets looked ahead to UK 10-yr Gilt

re-opening auction however recovered lost ground following strong demand.

- Sstg futures are steady to 1 tick higher, waiting on Q2 GDP data Friday