Government spokesman James Slack has...>

GILT SUMMARY: Government spokesman James Slack has indicated that the government

expects further Brexit talks with Brussels this week. 

- Chancellor of the Exchequer Sajid Javid has pledged to ramp up fiscal spending

in the event of a no-deal Brexit. His comments follow recent statements from the

Secretary of State for International Trade Lizz Truss outlining her vision for a

low-tax economy post Brexit.

- The final Q2 GDP print was revised 0.1pp higher (in Y/Y terms), while the

breakdown revealed weaker business investment. 

- The Dec-19 gilt future trades at 134.07, down 1 ticks from Friday's close and

10 ticks off the day's high; L-H: 133.9-134.17.

- Gilts trade mixed with yields trading in a 1-2bp range. Cash yields (Last / 1d

chg / L..H): 2Y (0.3794% / -0.3bp / 0.3711%...0.3846%); 5Y (0.2958% / -0.7bp /

0.2859%...0.301%); 10Y (0.5014% / +0.4bp / 0.4908%...0.5072%); 30Y (0.9916% /

+2.7bp / 0.9765%...0.9928%).

- The curve has steepened: 2s10s (10.8bp / 0.9bp / 9.6bp..12bp); 2s30s (59.8bp /

3.1bp / 56.4bp..59.8bp).