- In line with the sell-off in US......>

GILT SUMMARY: - In line with the sell-off in US TSYS, UK gilt yields have pushed

higher and the curve has steepened.

- The benchmark 2-year gilt trades at 0.863% up from a morning low of 0.842% and

the 10-year trades at 1.653% up from 1.613%.

- The 2s10s spread has widened to 78.0bps from 71.8bps.

- Short sterling futures have moved sharply today with the strip steepening.

Greens/blues are down 8.0-9.0 ticks.

- Inflation breakevens continue to inch higher with the 5-year benchmark trading

at 3.24% from a low of 3.23%.

- Providing some relief for markets, the government has indicated that it is

working on a new solution to the Irish border in the event that no other

solution is found. This would involve the UK being in a customs union with the

EU, which appears to have gained support in Dublin. 

- Headlines of a 20.5% Y/Y drop in car registrations should be considered

alongside the 23.1% gain the previous month.