There has been no stopping the fall....>

GILT SUMMARY: There has been no stopping the fall in Gilts Friday, likely

weighed on hope of advancement in Brexit negotiations despite EU's Michel

Barnier saying there are only 2-weeks left for UK to clarify its position.

Better than expected industrial production and trade balance data also seen

adding downward pressure.

- 2yr gilt yield is +2.6bp at 0.496%, 5-yr +6.0bp at 0.789%, 10-yr +7.0bp at

1.334% and 30-yr +6.3bp at 1.894% according to Tradeweb. The 10-year Gilt yield

has risen by circa 13bps since Wednesday afternoon.

- Gilts opened lower and remained in lower range following UK 0.7% m/m rise in

industrial production and a narrower trade deficit. But then extended losses

following press conference on last round of Brexit talks.

- Although there was no real update or progress made at the 2-day talks, markets

seemed to take positives from possibility the UK will make a better offer on its

exit bill that will allow sufficient progress to be made ahead of Dec EU summit.

- UK real yields have faired better especially long end with 30-yr breakevens

3.5bp wider. Swap spreads are little changed except 2-yr which is -3.2bps.