- The UK gilt curve has steepened......>

GILT SUMMARY: - The UK gilt curve has steepened since the open on the back of

the longer end underperforming. 

- The benchmark 2-year Gilt trades at 0.809% and in the middle of the day's

range, while the 10-year yield has pushed up to 1.572% from 1.564%.

- The 2s10s spread has widened to 75.8bps from 73.6bps, while the 2s30s has

traded up to 109.9bps from 107.9bps.

- GBP inflation breakevens continue to edge higher. The 5-year benchmark trades

at 3.296% marginally up from 3.287% and 11bps above the September low.

- Short sterling futures are broadly 1.0-2.0 ticks lower, with most movement

seen in the greens.

- Short sterling option flow has been decent this morning, but far below the

flurry of activity we saw on Thursday last week.

- The data calendar is relatively light this week. GfK Consumer Confidence data

for Sep, current account data for Q2, Nationwide House Price data and the final

Q2 GDP print will all be published on Friday.