Speaking at the World Economic Forum...>

GILT SUMMARY: Speaking at the World Economic Forum in Davos, Chancellor of the

Exchequer Philip Hammond said there was a real risk of a no-deal Brexit.

However, he also argued that parliament would eventually align with the

"acceptable outcome".

- Gilts opened lower at the open, but yields have subsequently inched lower.

Current yield levels: 2-year 0.766%, 10-year 1.273%, 30-year 1.767%. 

- The Mar-19 gilt future trades at 123.12, 6 ticks off yesterday's close.

- Inflation breakevens are holding steady. Current levels: 5-year 3.022%,

10-year 3.104%.

- Cable spiked overnight on the back of reports from The Sun newspaper that the

DUP will back Theresa May's Brexit deal next week. With respect to the veracity

of this report, the usual caveats apply.

- Short sterling futures trade weaker this morning. Whites/Reds/Greens/Blues

down 0.5-1.0 ticks.

- On the data front, Finance Loans for Housing and CBI Reported Sales will be

published later this morning.