It has been another disappointing......>

GILT SUMMARY: It has been another disappointing day for Gilts, trading lower

from the get-go and pretty much trading sideways in a tight 2bp range. The 10-yr

to 30-yr part of the yield curve has led the move lower, with 2s/10s 1.6bp

steeper.

- 2-yr Gilt yield is -0.4bp at 0.465%, 5-yr +0.9bp at 0.766%, 10-yr +1.4bp at

1.264% and 30-yr +1.4bp at 1.839%.

- The one bit of UK data released today did not have an impact on markets

despite slightly better than expected public sector borrowing numbers from the

UK. Borrowing ticked higher in November compared to October, however, ytd net

borrowing was the lowest since 2007 and showed budget below target.

- There was more of reaction to soft 3rd reading of Q3 GDP and rise in jobless

claims, but surprisingly the initial move was lower, which drew in buyers  and

squeezed Gilts higher.

- Domestic politics was relatively quiet today despite overnight resignation of

Damien Green, PM May's most senior cabinet minister and trusted ally.

- Swap spreads are touch wider, while breakevens are circa 1.5bp to 2.0bp higher