- The short end of the gilt curve......>

GILT SUMMARY: - The short end of the gilt curve has lacked direction this

morning while the longer end has sold off. The 2-year benchmark trades at 0.811%

and has held within a 0.799/0.820% range, while the 10-year yield has pushed up

to 1.539% from a low of 1.515%.

- The 2s10s spread has widened to 72.1bps from a low of 70.6bps.

- The Dec gilt future trades at 121.38 down from a high of 121.65.

- Breakevens are marginally lower from the open.

- The short sterling future strip is broadly 1.0 tick lower. Option flow has

been relatively light, with the only notable trade crossing the screen being: 3k

Dec18 99.125/99.000 put spread paid at 3.5 vs L Z8 @ 99.100.

- Cable has benefitted from the softer dollar as well as a modest improvement in

the likelihood of a Brexit deal being reached in the near term.

- The Halifax house price data for October was a touch stronger than expected in

annualised terms, with prices up 1.5% Y/Y vs 1.3% survey.