The 10-year Gilt yield has opened......>

GILT SUMMARY: The 10-year Gilt yield has opened sharply lower this morning was

trading 2.8bp lower as it followed the cue of the of the German Bunds, which

whipped higher abruptly from the getgo. The 10-year The December 10Y Gilt

futures contract retreated after approaching the Oct 9 high of 124.05.

- In the press conference held yesterday after the fifth round of Brexit talks

the EU's chief negotiator, Michel Barnier commented that talks were

"deadlocked". However, the Handelsblatt newspaper reported that Barnier ""may

offer UK 2-year transition" deal if it meets exit obligations.   

- Gilts have since given back all of the Bund-inspired gains as sellers have

re-entered.

- The 2Y Gilt yield is +0.9bp at 0.482%, 5Y +0.4p at 0.812%, 10Y is unch at

1.38% and 30Y is also unch at 1.945%.

- There is not much on the UK calendar today but the week's big release is US

CPI, which has gained added importance after the FOMC minutes on Wednesday.