The Bank of England's Gertjan..........>

GILT SUMMARY: The Bank of England's Gertjan Vlieghe has indicated that in a

no-deal Brexit scenario it is more likely that monetary policy would be paused

or eased, rather than tightened. 

-Providing a modicum of support to the PM, Conservative MP and leader of the

European Research Group Jacob Rees Mogg has indicated that the eurosceptic block

would not vote against this evening's Brexit amendment which seeks to affirm

support for May's ongoing negotiations.

- While the shorter-end of the gilt curve is little changed on the day, the

belly and longer-end has rallied through the session. The 10-year in particular

has benefitted from the 1.625% Oct-28 gilt auction earlier in the day. 

- Current yield levels: 2-year 0.716%, 10-year 1.136%, 30-year 1.662%. The 2s10s

spread has narrowed to 41.1bps from 45.3bps.

- Inflation breakevens have edged higher this afternoon with the 5-year

benchmark trading at 3.138% up from 3.115%.

- Short sterling futures are 0.5-3.5 ticks higher with the strip flattening

slightly on the back of greens/blues outperforming.