March Gilt future opened 23 ticks......>

GILT SUMMARY: March Gilt future opened 23 ticks lower and then traded into a

very tight 17 tick range for the rest of the session with volumes down over 50%

on average, with little new news seen to direct markets. The 10-yr point on the

yield curve has been the worse performer throughout the day.

- 2-yr Gilt yield is +0.8bp at 0.668%, 5-yr +0.9bp at 1.062%, 10-yr +1.6bp at

1.598%, 30-yr +1.2bp at 1.986% and 50-yr +1.2bp at 1.771%.

- There was some positive responses from PM May's speech on security after

Brexit over the weekend and the feeling is that the UK's direction following the

split is gradually becoming clearer. Although Guy Verhofstadt warned that there

would only be an "annex" inside the withdrawal agreement as a Brexit trade deal

would not be agreed by October, this is probably the best the UK could expect.

- Markets still waiting for comments from BoE Carney at 1745GMT today, but is

unlikely to touch on monetary policy. First major UK data will be released

Wednesday when latest public sector borrowing and labour report cross the wires.

- Breakevens are steady to 1bp wider/steeper, while swap spreads are also steady

to 1bp wider.