Gilts recovered from early morning.....>

GILT SUMMARY: Gilts recovered from early morning sell-off in London afternoon

trade, supported by renewed domestic political concerns as PM May backs down to

demands for an end-date on the 'Brexit backstop', and look to close mixed. the

10-yr to 30-yr part of the yield curve has unperformed.

- 2-yr Gilt yield is -0.3bp at 0.731%, 5-yr -0.4bp at 1.085%, 10-yr +0.4bp at

1.386%, 30-yr +0.5bp at 1.854% & 50-yr -0.2bp at 1.678% according to Tradeweb.

- PM May, under pressure from Brexit Secretary David Davis agreed to put an end

date to the 'Brexit backstop' following intense discussions in the morning.

However there is no guarantee that this proposal will be accepted by the EU and

some in the news industry are saying that Davis has been outmanoeuvred, while

others say that it has damaged May. Markets await Barnier reaction.

- Short sterling strip has also reversed losses and are currently little changed

on the day. 5-yr breakevens are 2bp tighter at 3% and 10's 1.4bp tighter at

3.07%. 

- Looking ahead BoE Ramsden is scheduled to give a speech at 1600BST today.