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

GILT SUMMARY: - The 10-year Gilt yield opened +1.2bp higher on Wednesday morning

following the cue of Bunds as the tensions in Spain and the growing uncertainty.

- Brexit talks are making slow progress as both the EU and UK blame each other

for a rigid stance in their negotiating position. PM Theresa May was ambivalent

about the position she would take on a second Brexit referendum vote in a radio

interview with LBC.

- 2-yr Gilt yield is +1.8bp at 0.463%, 5-yr +1.7bp at 0.794%, 10-yr +1.9bp at

1.382% and 30-yr +1.7bp at 1.962%

- No significant data on the docket for the UK today. However, we do have UK's

Chancellor of the Exchequer Philip Hammond talking at the Treasury Select

Committee and the PM facing weekly questions in the House of Commons.

- Next support for the Gilts futures is at 123.52 which is the Oct 10th low.

However, realised volatility has collapsed in the UK Gilt market and 10d

realised is back to almost its lowest level of the year.

- In Spain, the Catalan regional government temporarily suspended the

independence vote results and has called for talks with the Spanish govt.