Gilts remain mixed heading into........>

GILT SUMMARY: Gilts remain mixed heading into Thursday's close, with the yield

curve modestly flatter as solid 10-yr Gilt auction supports bid in long to ultra

long-end of the Gilt curve.

- 2-yr Gilt yield is +0.4bp at 0.803%, 5-yr +0.7bp at 1.128%, 10-yr +0.6bp at

1.435%, 30-yr -0.9bp at 1.808% & 50-yr -1.6bp at 1.593%, according to Tradeweb.

- Gilts opened lower, weighed by overnight news that looked to increase the

chances of UK/EU reaching a Brexit transitional agreement next week.

- Gilts suddenly spiked higher, reversing losses, supported by solid auction of

a new 10-yr Gilt that saw a 0.2bp tail and cover of 2.62 times and newswire

headline that said France is looking to announce measures against Russia in a

show of support for the UK. Gilt future ticked above first resistance level of

122.01/2 but quickly pared gains with little appetite seen to push it further.

- Solid US data saw gilts slip lower once more, however announcement that US,

France and Germany blame Russia for ex-spy poisoning, underpinned bid in Gilts

- Breakevens are mixed with 5-yr +0.5bp and 10-yr -1bp. While swap spreads are

little changed, excluding the 2-yr which is 14.1bp tighter.