PM Boris Johnson has proposed that.....>

GILT SUMMARY: PM Boris Johnson has proposed that Northern Ireland should remain

in the EU regulation zone for goods and agriculture after Brexit. The PM has

further stated that the whole of the UK should leave the EU customs zone after

the transition period. The announcement follows reports earlier in the week that

the government has sought to broker a deal to gain DUP support.

- The Dec-19 gilt future trades at 133.94, down 56 ticks from Tuesday's close

and 13 ticks off the day's low; L-H: 133.81-134.26.

- Gilts have sold off with yields 5bps higher on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.3901% / +5.3bp / 0.3664%...0.3919%); 5Y (0.3017% / +5bp /

0.2762%...0.3042%); 10Y (0.5185% / +5bp / 0.493%...0.5213%); 30Y (1.0023% / +5bp

/ 0.9716%...1.0047%).

- The curve has bear flattened: 2s10s (12.3bp / -0.2bp / 11.9bp..12.7bp); 2s30s

(60.5bp / -0.4bp / 59.1bp..60.5bp).

- The short sterling futures strip has steepened: W (- 0.5/1.5 ticks); R (-

2.0/3.0 ticks); G (- 3.0/3.5 ticks); B (- 3.5/4.5 ticks).