Hope for a US-China trade..............>

GILT SUMMARY: Hope for a US-China trade breakthrough has helped push Gilts to

eight-session lows.

- With the FTSE 100 touching highest levels since Oct 10 (7,170.5), and Sterling

strengthening, the Dec 18 Gilt future is down 33 ticks at 121.91, low of 121.83.

- The cash curve is bear steepening: 2-Yr yield up 1.9bps at 0.79%, 5-Yr up

2.6bps at 1.07%, 10-Yr up 3.4bps at 1.489%, and 30-Yr up 2.6bps at 1.892%.

- Short Sterling a little weaker across the strip, down 3-4 ticks in Greens and

Blues. Market continuing to digest a slightly hawkish BOE Super Thursday.

- Post BOE announcement MNI PINCH stayed broadly the same with a 25bps hike

fully priced in by November 2019 with a rate hike by August at 55%.

- BOE`s Broadbent said on BBC radio this morning that the impact on interest

rates of No-Deal Brexit `difficult to see`.

- Only key UK data today: construction PMI (0930GMT) was previously 52.1 in

September and a drop to 52.0 is pencilled in for October.