This morning's manufacturing PMI.......>

GILT SUMMARY: This morning's manufacturing PMI print for January was weaker than

expected (52.8 vs 53.5 survey) but still above the Euro Area Big Four. However,

this in part reflected heavy inventory building as firms stockpile ahead of

Brexit. 

- Various reports indicate that PM Theresa May continues to woo Labour

backbenchers with promises of financial support for their constituencies in

order to secure backing for her Withdrawal Agreement.

- Following the initial sell-off, gilts started recouping losses just after

1000GMT with yields returning to the day's lows. Yields are now 0.3/0.4bp lower

on the day. The very long-end has underperformed the rally with the 30-year

benchmark trading at 1.724%, in the middle of the day's range. The 2s30s spread

has widened to 97.0bp from a low of 94.5bps.

- The Mar-19 gilt future trades at 123.65 near the highs of the day.

- Breakevens are broadly unch with the 5-year trading at 3.088%.

- Short sterling futures are 1.0-3.0 ticks higher with reds/greens

outperforming.