Speaking to the Treasury Committee.....>

GILT SUMMARY: Speaking to the Treasury Committee this morning, Bank of England

Governor Mark Carney reaffirmed comments made previously that the risk of a

no-deal Brexit is 'uncomfortably high'. He also indicated that the Bank's

forecast assume that there is a smooth Brexit transition. 

- The early morning rally in gilts soon petered out with yields pushing higher

across the curve. The 2-year benchmark yield trades at 0.707% up from a morning

low of 0.668% while the 10-year trades at 1.392% up from 1.356.

- There has been little overall direction in 2s10s, while the 2s30s spread has

narrowed 2bps.

- The Dec gilt future trades at 122.96 down from 123.27.

- There has been a modest downtick in inflation expectations. The 5-year trades

at 3.142% and the 10-year at 3.246%.

- Cable trades at 1.28 and has held within a relatively tight range this

morning.

- The short sterling futures strip is flat to 1.0 ticks lower.