Gilts saw some sharp 2-way flow in.....>

GILT SUMMARY: Gilts saw some sharp 2-way flow in London afternoon trade,

reacting to updates on the compromise on the EU Withdrawal Bill vote, comments

from central bank officials and continued global trade concerns. Overall, gilts

look set to close modestly lower with the yield curve steeper as the ultra

long-end underperforms the short/medium/long-end.

- 2-yr Gilt yield is +0.3bp at 0.702%, 5-yr +0.1bp at 1.021%, 10-yr +0.6bp at

1.286%, 30-yr +1.0bp at 1.763% & 50-yr +1.9bp at 1.589% according to Tradeweb.

- A compromise amendment to the EU withdrawal Bill was finally reached between

the government and Tory rebels just before the start of the amendment debate

which means the government is unlikely to lose the key vote.

- Newswires reported that China would make "strong countermeasures against US

tariffs". While ECB Draghi said that unit labour costs are rising and the

central bank clearly sees an upward trend in inflation. 

- Sstg strip has reversed earlier small gains and is now steady to 1 tick lower,

led by fall in white/red contracts, with attention turning to key BoE monetary

policy decision and statement tomorrow