June Gilt future hit session high......>

GILT SUMMARY: June Gilt future hit session high shortly after 1100GMT following

early release of EU draft guidelines on future EU/UK trade relationship but then

gradually faded gains on mild unwind of risk-off flows. 

- 2-yr Gilt yield is -0.4bp at 0.809%, 5-yr -1.3bp at 1.165%, 10-yr -2.2bp at

1.498%, 30-yr -2.5bp at 1.903% and 50-yr -2.5bp at 1.684%.

- After squeezing higher in reaction to Gary Cohn resignation overnight, Gilts

extended gains in reaction to Bloomberg headlines on EU's draft guidelines on

future EU/UK trade agreement and concluded that it falls short of what the UK

wants and can only offer a FTA on service under host state rules.

- Gilts pared gains as NY traders got to their desk and US equities futures

bounced off lows as markets unwound some of the risk-off sentiment seen earlier.

Better than expected US ADP numbers and Hammond comments that transitional deal

is expected at end of March also added downward pressure to Gilts. 

- Gilts though did recover some of the lost ground in last hour of trade or so.

Breakevens are steady to 1.5bp tighter/flatter swap spreads mixed.