Gilts spiking higher into London.......>

GILT SUMMARY: Gilts spiking higher into London close, possible on the back of

newswire reports that the EU parliament does not expect much progress at Brexit

talks next month, and probably playing catch up to earlier German Bund move.

- 2-yr Gilt yield is -2.3bp at 0.148%, 5-yr -2.8bp at 0.385%, 10-yr -4.0bp at

0.967% and 30-yr -4.0bp at 1.632% according to Tradeweb.

- Earlier Gilts recovered off a strange sharp move lower during ECB press

conference, as European government bonds took heed of dovish comments from

President Draghi and rallied strongly. Gilts were seen lagging though until the

last 30 minutes of trading saw them spike higher, with the yield on the 10-year

Gilt crashing back below 1.00%.

- Further comments from EU's Brexit negotiator Michel Barnier and the release of

a position paper on Ireland/N.Ireland and minutes of a committee meeting back in

July where both Juncker and Barnier questioned Stability of of David Davies and

his commitment also weighed on political concerns within the UK.

- Swap spreads remain tighter on the day with 2-yr and 10-yr around -1.0bp,

while breakevens are sharply wider with 5-yr +4.0bps.