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Gilts reversed gains in the............>

GILT SUMMARY: Gilts reversed gains in the afternoon once again and look set to
close modestly lower weighed by hawkish comments from Fed Williams and newswire
reports that Catalonia is unlikely to to declare independence on Monday due to
divisions within the leadership.
- Fed Williams said that rates needed to rise towards 2.5% neutral rate and was
optimistic inflation will hit target, which helped push expectations for a rate
rise in December higher, which weighed on Gilts.
- 2-yr Gilt yield is +0.5bp at 0.455%, 5-yr -0.2bp at 0.786%, 10-yr +0.5bp at
1.375% and 30-yr +2.1bp at 1.957% according to Tradeweb.
- Earlier Gilts drifted higher on the back of solid 6-year Gilt re-opening
auction and on initial UK political concerns as some Conservative MPs called for
PM May to resign following disastrous speech yesterday. 
- The war on PM May waned in the afternoon and coupled with Fed Williams
comments, tension in Spain cooling and upbeat US factory orders/durable goods
all weighed heavily on Gilts.
- Breakevens are circa 1.5bp wider, while 15-yr swaps spreads are 2.5bp tighter

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