It has been a little bit of a choppy...>

GILT SUMMARY: It has been a little bit of a choppy session in Gilts, following a

raft of Eurozone and US data, but in the end look set to close marginally higher

led by the long-end of the curve.

- 2-yr Gilt yield is -0.5bp at 0.175%, 5-yr -0.1bp at 0.443%, 10-yr -0.3bp at

1.033% and 30-yr -0.8bp at 1.698% according to Tradeweb.

- Gilts opened modestly lower weighed by modest easing in US Treasuries

overnight and tick higher in UK GfK consumer confidence. Gilts pared losses

however, as markets interpreted BoE Saunder's comments as less hawkish than

previous -- Backs modest rate rise to get to inflation goal, but risk Brexit

path is bumpy and weighs on confidence.

- Gilts reversed gains and tip-toed higher as markets digested DMO announcement

of Q3 Gilt issuance which showed a lack of ultra-long Gilt supply and Eurozone

flash HICP ticked higher as expected.

- Markets then witnessed some choppy 2-way flow before, during and after raft of

US data, but overall buyers just about had their way.

- Swap spreads are wider led by the ultra-long end. 5Y & 10Y breakeven are +1bp.