Gilts rose sharply on the open on......>

GILT SUMMARY: Gilts rose sharply on the open on the back of global risk aversion

but despite whipsawing throughout the day are again trading around opening

levels.

- The Dec 18 Gilt future is up 38 ticks at 119.97, around the opening level of

120.00, having traded in a range of 119.77-120.11 today. This has mirrored the

FTSE, which dropped sharply at the open and has since traded sideways.

- There has been slight bull flattening in the cash curve, with the 2-Yr yield

is down 3.1bps at 0.882%, 5-Yr is down 3.8bps at 1.25%, 10-Yr is down 4.4bps at

1.684%, and 30-Yr is down 0.9bps at 2.076%.

- Short Sterling futures have rallied at the far end of the strip: Dec21-Sep22

contracts up 2.0-3.0 ticks, albeit a couple of ticks off day`s highs.

- A few Brexit developments today but nothing really pushing the needle compared

with the impact of global risk appetite; Irish PM Varadkar expressed doubts of

reaching a divorce deal by November, while the DUP threatened `serious action`

if PM May reaches a deal that they disagree with.

- No key UK data coming Friday, and no BOE speakers.