The latest Brexit development to hit...>

GILT SUMMARY: The latest Brexit development to hit the wires comes from the

Austrian Der Standard newspaper, which claims that a Brexit text could be

available by Monday according to EU sources. This follows reports on Wednesday

that the UK cabinet ministers have been invited to read a copy of the draft EU

withdrawal arrangement.

- The response in the market has been relatively subdued. Yields have broadly

drifted lower, albeit within a narrow range. The 2-year benchmark trades at

0.822% down from a high of 0.834% while the 10-year yield has traded down to

1.553% from 1.568%.

- The curve has flattened with the 2s10s spread narrowing to 72.3bps from a high

of 74.0bps.

- The Dec Gilt future trades at 121.27 up from a low of 121.15.

- The short sterling futures strip is off 1.0-3.0 ticks. 

- Cable has similarly shrugged off the latest Brexit headlines and has taken a

leg lower to 1.310 from a morning high of 1.315.