It already appears as though...........>

GILT SUMMARY: It already appears as though positions are hardening on both sides

of the channel ahead of the next stage of discussions between Westminster and

Brussel over the EU Withdrawal deal. Boris Johnson's government has indicated

that talks cannot progress unless the Irish backstop is scrapped, which the EU

has so far flatly rejected. 

- The Sep-19 gilt future trades at 132.02, up 17 ticks from Thursday's close and

12 ticks off the day's high; L-H: 131.79-132.14.

- Gilts have rallied with yields 1-2bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.4822% / -1.5bp / 0.4712%...0.4863%); 5Y (0.4751% / -1.5bp /

0.4642%...0.4789%); 10Y (0.6889% / -1.9bp / 0.6793%...0.6931%); 30Y (1.3489% /

-0.9bp / 1.3414%...1.3548%). 2s10s (19.7bp / -0.3bp / 19.6bp..20.2bp); 2s30s

(85.7bp / 0.7bp / 85.4bp..86bp).

- Short sterling futures have broadly rallied with greens outperforming: w

(trades mixed); R (+ 1.0/2.0 ticks); G (+ 2.5 tick); B (+ 2.0/2.5 ticks).