The EUs Sebine Weyand has stated.......>

GILT SUMMARY: The EUs Sebine Weyand has stated that Brussels will not reopen the

Withdrawal Agreement and has stated both that there are high risks of a no-deal

Brexit by accident, and that this is in fact the default scenario on March 29 if

no parliamentary consensus is reached.

- Gilt yields lurched lower following Weyand's comments. The longer-end has

outperformed, with the curve flattening. The 10-year benchmark yield trades at

1.281% down from a high of 1.325%, while the 2s10s spread has narrowed to

49.6bps from 51.0bps. 2s30s has similarly traded down 2bps from the high.

- The Mar-19 gilt future trades at 123.00 near the top of the day's range.

- Short sterling futures are 0.5-3.0 ticks lower across the strip, with marginal

outperformance in greens/blues.

- Next up on the data calendar will be consumer credit, mortgage approvals and

money supply data for December, which will be published on Wednesday.