Gilts remained largely unchanged.......>

GILT SUMMARY: Gilts remained largely unchanged throughout the day until reports

emerged from Spain around 1530GMT of a Brexit accord already being hammered.

Gilts sold off as the headline surfaced but quickly steadied, the Mar-19 future

losing 3 ticks. 

- The Gilt Mar-19 future is down 6 ticks across the whole day, currently trading

just off lows at 123.94.      

- The defection of three Tory MP's this morning had little effect on the market.

The defections changed nothing in regard to likely Brexit outcomes and were

widely expected to come.  

- Anna Soubry, Sarah Wollaston and Heidi Allen all crossed the floor to the

newly formed The Independent Group, citing the hold of the ERG and DUP on Tory

party policies.

- The Gilt curve underperformed in the belly: the 2s5s bear steepening by

0.3bps, with 5s10s bear flattening 0.1bps. The benchmark 2yr currently trades at

a yield of 0.75%, 5yr at 0.84%, and 10yr at 1.18%.      

- Tomorrow sees no key UK data, Brexit headlines will continue to dominate.