The breakdown of Brexit negotiations...>

GILT SUMMARY: The breakdown of Brexit negotiations over the weekend has

consolidated last week`s gains for Gilts first thing Monday.

- The Dec 18 Gilt future is up 20 ticks at 120.66, boosted by renewed Brexit

uncertainty as well as U.S.-Saudi tensions.

- Slight bull flattening in the curve: the 2-Yr yield is down 1.8bps at 0.818%,

5-Yr is down 2.1bps at 1.176%, 10-Yr is down 2.1bps at 1.612%, and 30-Yr is down

1.2bps at 2.024%.

- Short Sterling futures have gained across the strip, with Red and Green

contracts up the most (3 ticks). 

- Talks between Brexit Sec. Raab and EU chief negotiator Barnier reportedly

broke down Sunday and have been suspended until Wednesday's EU Summit dinner,

with Barnier noting that "despite intense efforts, some key issues are still

open, including the backstop to avoid a hard Irish border."

- But others (BBG) cited sources pointing to prospects for a deal soon.

- No key UK data today; later in the week sees a plethora however including

Jobless claims, September inflation, and public sector borrowing.