It has been all about the overnight....>

GILT SUMMARY: It has been all about the overnight sell-off in US and Asian

equities and the negative impact on European stocks which has led to an

flight-to-quality bid in Gilts today. Gilts have slipped from session highs, but

still remain sharply up on the day.

- The yield curve has pivoted around the 10-yr sector with 2s/10s 3.0bp flatter

and 10s/30 1.3bp steeper with 10-yr yield 6.5bp lower at 1.493%.

- Final terms have been set on the Stg2.75bln syndicated re-opening of 30-yr

2048 IL gilt and is expected to be priced later today. Demand was strong with

order book in excess of Stg16bln that included JLMs of Stg3.3bln.

- Breakevens are steady to tighter with the 30-yr 1.8bp lower at 3.445%, while

swap spreads are mixed with 2-yr and 10-ye 3.9bp and 2bp wider respectively.

- 3-days of Brexit transitional talks get underway in Brussels today, but only

at a technical level, with the UK hoping a deal can be reached by the time of

the EU summit meeting on March 22. No press briefing is expected until Friday

were the UK is meant to clarify its future relationship with the EU.

- Attention now on US stock markets, with future pointing to a negative open.