It's been a quiet morning so far for...>

GILT SUMMARY: It's been a quiet morning so far for Gilts. UK inflation data

showed a slow down to 2.3% with the market paying little attention. Since

1100GMT Gilts have begun to grind slightly higher. 

- The Mar 19 Gilt future is up 31 ticks at 123.4, having traded in a range of

123.07-123.4 today. 

- The Gilt cash curve has seen steepening with outperformance coming from the

belly. The 2-Yr yield down 1.9bps at 0.73%, 5-Yr down 2.2bps at 0.885%, 10-Yr

down 2.4bps at 1.256%, and 30-Yr down 1bps at 1.781%. 

- European Commission confirmed overnight news that they would not press for an

EDP against Italy. Mar 19 BTP future is up 136 ticks at 126.78, though off day`s

high of 127.45, with 5-yr yield outperforming, down 14.5bps at 1.835%.

- 10-Yr Italian BTPs vs Bunds is down 12.4bps at 256.9bps, with Bunds basically

static on the day (Mar19 Futures up 7 ticks at 163.41).

- Other periphery spreads (Spain, Portugal) steady despite positive Italy news.

- Commission also released no-deal Brexit contingency guidelines, which include

equivalence for OTC derivatives for 12 months among other measures.