Gilts retraced gains made over the.....>

GILT SUMMARY: Gilts retraced gains made over the course of the day on comments

from EU Chief Brexit negotiator Michel Barnier that a Brexit deal is 'realistic'

within 6-8 weeks. 

- Those comments, reported just before 1400BST, dropped Dec8 Gilt futures as

much as 23 ticks to 121.85 and well off day's high of 121.18. However they have

recovered somewhat, last at 121.97.

- The Gilt curve is a little steeper, with 2-Yr yields up 0.5bps at 0.767%,

55-Yr up 0.7bps at 1.054%, and 10-Yr up 1.2bps at 1.471%. 

- The 30-Yr segment underperformed, with yield up 1.3bps at 1.828%: supply may

be weighing as DMO sells Stg2.5bln in new 1.75% Jan-49 Gilts on Tuesday.

- The Short Sterling strip is weaker, with the Jun19-Dec21 area performing

worst, down 2-3 ticks (shorter-dated and longer-dated fairly static).

- Other news of note is the Guardian's report that EU leaders are expected to

announce an extraordinary summit on November 13 to wrap up a political

declaration on a future deal with the UK.

- UK labour market report for July out Tuesday at 0930BST.