Nominal Gilts are slightly weaker......>

GILT SUMMARY: Nominal Gilts are slightly weaker Wednesday, though the real

action has been in linkers after official talk of switching from RPI to CPI.

- The Mar 19 Gilt future is down 11 ticks at 122.59, having traded in a range of

122.5-122.92 today.

- The 2-Yr yield is down 1.1bps at 0.818%, 5-Yr is unchanged at 0.966%, 10-Yr is

up 1.6bps at 1.327%, and 30-Yr is up 2.2bps at 1.836%.

- Linker moves more interesting after the House of Lords Economic Committee

recommended scrapping RPI and moving to CPI, though unclear whether this finding

will translate into action. 10-Yr real yields up 11bps at -1.903%.

- On Brexit front, two dates for the diary were presented by House Leader

Leadsom earlier : Jan 21 (confirmed) for the government to unveil its withdrawal

`Plan B`, and Jan 29 for the vote.

- PM May said to be `reaching out` to other parties, but little forthcoming on

compromises, in public at least. Still no direct talks between May and

opposition Corbyn.

- Friday`s highlight set to be Dec retail sales at 0930GMT.