Higher on the open in line with Bunds

Gilts have opened on the front foot this morning, in line with early moves in Bunds with 5-year gilts underperforming.

• As we noted in the Gilt Week Ahead, Brexit talks and MPC speakers will be the highlights this week but gilt markets will digest the weekend's political events on the open.
• Dominic Cummings has left Number 10 with immediate effect (he had been expected to stay on until the end of the year when the Brexit transitional phase ended). Given that he was the campaign director for "Vote Leave" it will be hoped by at least some that this means the UK will soften its stance in Brexit negotiations which might be enough to get a deal over the line over the next couple of weeks.
• 2y yields down -0.8bp today at -0.46%
• 5y yields down -0.5bp today at 0.7%
• 10y yields down -0.8bp today at 0.329%
• 30y yields down -0.7bp today at 0.917%
• 2s10s unch today at 37.5bp
• 10s30s up 0.1bp today at 58.8bp