March Gilt future has traded along.....>

GILT SUMMARY: March Gilt future has traded along the bottom of Monday's range

after earlier slow grind lower. The ultra long-end sold off though to catch up

with the underperformance of the 10-yr sector, therefore leaving the curve

steeper as 2-yr remained anchored.

- 2-yr Gilt yield is +0.3bp at 0.568%, 5-yr +1.6bp at 0.872%, 10-yr +2.2bp at

1.359%, 30-yr +2.2bp at 1.867% and 50-yr +2.6bp at 1.652%.

- There was little to precipitate the market action apart from weekend comments

from French President Macron that it would be possible for the UK to get a

bespoke trade deal, but only if they accept certain "preconditions". The French

president said that while a special solution could be secured, full access to

the single market without accepting its rules was "not feasible".. The saga

surrounding the US partial government shutdown was also at the forefront of

traders mind.

- Ultra long-end of the swap spread curve have pared widening move while 2-yr is

now +3.9bp. Breakevens are mixed with 5-yr 0.7bp tighter and 30-yr 0.8bp wider,

while 10-yr is unchanged.