The 10Y gilt yields have been..........>

GILT SUMMARY: The 10Y gilt yields have been trading sideways after an initial

push upwards early in the morning. Although the front of the yield curve has

come under higher pressure in turn bear flattening the yield curve.

- 2-yr Gilt yield is +0.9bp at 0.448%, 5-yr +1bp at 0.780%, 10-yr +0.4bp at

1.330% and 30-yr +0.3bp at 1.906% according to data from Tradeweb.  

- In terms of data release there was CBI Trends Total Orders, which game in at

an extremely poor level of -2. The survey is consistent with a picture of

relatively subdued UK growth with elevated inflation, however, there was muted

reaction from the gilts.

- On the Brexit front, there has been a push from business groups calling for a

transition deal to be agreed upon 'as soon as possible' according to the FT.

- UK breakevens are currently trading about 1.1bp tighter and swap spreads are

mixed with 2Y currently with 1.5bp wider while the 15Y is 1.5bp tighter.

- PM May is due to give an update to MPs on the EU Summit from about 1530BST,

which is likely to concentrate on Brexit.