PM Boris Johnson and his Irish.........>

GILT SUMMARY: PM Boris Johnson and his Irish counterpart Leo Varadkar have

stated that there could be a pathway to a Brexit deal. While this remains the

case, the window for reaching a deal before the October 31 deadline is

narrowing.

- As the UK battles to keep a deal alive, Brexit Secretary Stephen Barclay will

meet with his EU opposite Michel Barnier tomorrow for further talks. 

- The Dec-19 gilt future trades at 133.62, down 100 ticks from Wednesday's close

and trading near worst levels; L-H: 133.61-134.67.

- Gilts have sold off with yields 7-9bps higher on the day. Cash yields (Last /

1d chg / L..H): 2Y (0.435% / +7.1bp / 0.3973%...0.4353%); 5Y (0.3422% / +8.5bp /

0.3004%...0.3425%); 10Y (0.5462% / +8.7bp / 0.502%...0.5462%); 30Y (1.0453% /

+8.1bp / 1.0003%...1.0453%).

- The curve has bear steepened: 2s10s (10.5bp / 1.5bp / 9.3bp..10.6bp); 2s30s

(60.4bp / 1bp / 59.3bp..60.4bp).

- The short sterling futures strip has steepened: W (- 3.0/5.5 ticks); R (-

6.0/6.5 ticks); G (- 6.5/7.0 ticks); B (- 7.0/8.0 ticks).