The US and UK have started to spar.....>

GILT SUMMARY: The US and UK have started to spar over future negotiations in a

sign of Washington's increasingly assertive trade policy and the UK government's

desire to pursue new trade agreements post-Brexit. 

- US Trade Representative Robert Ligththizer set out the US' negotiating

objectives, which includes demands for greater market access for agricultural

products. An official spokeswoman for the UK government was quick to state that

food standards would not be lowered for the US in a future trade deal.

- The gilt curve has steepened this morning as the front-end has outperformed

the broader rally. Current yield levels: 2-year 0.801%, 5-year 1.004%, 10-year

1.301%, 30-year 1.810%. The 2s10s spread has widened to 49.2bps from 47.2bps,

while 2s30s has traded up to 100.0bps from a low of 98.8bps.

- The Mar-19 gilt future trades at 123.08 near the top of the morning range.

- Inflation breakevens are trading relatively flat today.

- The short sterling futures strip has steepened with whites up 0.5 ticks and

greens/blues broadly down 0.5 ticks.