Government spokeswoman Alison..........>

GILT SUMMARY: Government spokeswoman Alison Donnelly has stated that there is an

'absolute commitment' not to put checks on the Irish border and that PM

Johnson's team will present their Brexit proposals to Brussels in the coming

days.

- This morning's gilt auction (1.75% 2037 Gilt) was well subscribed, with a

bid-to-cover of 1.89.

- The manufacturing PMI for September surprised higher but remains in

contraction territory (48.3 vs 47.0 survey).

- The Dec-19 gilt future trades at 133.58, down 66 ticks from Monday's close and

28 ticks off the day's low; L-H: 133.3-134.15.

- Gilts have sold off with yields 4-7bps higher on the day. Cash yields (Last /

1d chg / L..H): 2Y (0.4008% / +3.7bp / 0.3969%...0.4136%); 5Y (0.3206% / +4.1bp

/ 0.3155%...0.3328%); 10Y (0.5494% / +6.6bp / 0.5439%...0.5615%); 30Y (1.04% /

+6.8bp / 1.0343%...1.0496%).

- The curve has bear steepened: 2s10s (14.2bp / 3.2bp / 11.3bp..14.5bp); 2s30s

(63.4bp / 3.2bp / 60.3bp..63.7bp).