Gilts pretty much traded sideways in...>

GILT SUMMARY: Gilts pretty much traded sideways in London afternoon session,

only squeezing slightly higher on soft US data. However, this push higher was

short lived with prices fading lower towards the close following large gilt

future block. the 10Y part of the yield curve has led the move higher.

- 2-yr Gilt yield is -2.3bp at 0.414%, 5-yr -3.2bp at 0.731%, 10-yr -3.7bp at

1.273% and 30-yr -2.9bp at 1.848% according to Tradeweb.

- Most of Friday's moves were seen in the morning session when gilts rose from

an opening unchanged levels on the back of sell off in equities in a risk off

scenario aided by the news that the Spanish government is to proceed with

suspending the Catalan autonomy. Weaker than expected retail sales figure also

underpinned the gilts. However, disappointing 10Y gilt auction weighed on

prices. 

- Swap spreads are mixed with the 2Y spread 1.4bp wider and breakevens are

tighter by 2-2.5bp.

- PM Theresa May is due to address EU leaders after EU Summit dinner.