- Having pulled back from the..........>

GILT SUMMARY: - Having pulled back from the post-CPI surprise (2.7% Y/Y for

August, vs 2.4% survey) sell-off this morning, gilt yields have resumed the push

higher.

- The benchmark 2-year gilt trades at 0.841% up from a low of 0.811%, while the

10-year trades at 1.602% up from 1.565%.

- The curve steepened leading up to the CPI print, but has since flattened. The

2s10 spread hit a high of 76.8bps before falling back to 75.6bps.

- Short sterling futures are off 2.0-4.0 ticks, with reds posting the largest

move.

- The newsflow around Brexit will pick up again as the UK heads into the EU

Summit in Salzberg. Writing in Die Welt yesterday, UK Prime Minister Theresa May

has argued that the EU must evolve its position. 

- Next up on the data calendar is retail sales, which will be published tomorrow

at 0930BST.