The markets waited all day for PM......>

GILT SUMMARY: The markets waited all day for PM May's Brexit speech and in the

end it was rather disappointing and thin on details, with only the confirmation

the UK is looking for a 2-yr transition deal to smooth the exit process and

guaranteeing EU citizen rights post Brexit.

- Weather this will be enough to meet the demands of the EU in order to progress

talks is unclear with markets seen waiting for a reaction from Michel Barnier. 

- Gilts initial spiked to session high following announcement that the UK would

like a "strong dispute resolution mechanism on trade differences" and doesn't

want "ECJ as arbiter". However, quickly pared gains and eventually slipped below

the level seen before start of May's speech, but hold onto marginal gains as May

said UK would honour commitments made in period of our membership. While

Sterling spiked lower vs US Dollar, but has managed to regained majority of

losses by London close.

- 2-yr Gilt yield is -0.2bp at 0.449%, 5-yr -0.4bp at 0.772%, 10-yr -0.7bp at

1.363% and 30-yr -0.3bp at 1.932% according to Tradeweb.

- Swaps spreads are marginally tighter while breakevens are 0.5bp to 1.5bp wider