UK GDP data confirm that the economy...>

GILT SUMMARY: UK GDP data confirm that the economy returned to positive growth

during the third quarter. 

- In a bid to shore up support in its Brexit-leaning constituencies, the Labour

Party has promised to 'manage migration' from the EU. 

- The Dec-19 gilt future trades at 131.13, up 16 ticks from Friday's close and 8

ticks off the day's high; L-H: 130.85-131.21.

- Gilts have rallied with yields up to 2bps lower on the day. Cash yields (Last

/ 1d chg / L..H): 2Y (0.5432% / -0.4bp / 0.5379%...0.5478%); 5Y (0.5281% /

-0.3bp / 0.5214%...0.5329%); 10Y (0.7741% / -1.4bp / 0.7691%...0.7798%); 30Y

(1.29% / -1.5bp / 1.2867%...1.2967%).

- The curve has bull flattened: 2s10s (22.2bp / -1.4bp / 22.1bp..23.4bp); 2s30s

(73.8bp / -1.6bp / 73.7bp..75.5bp).

- Short sterling futures have broadly rallied with reds outperforming: W

(broadly + 0.0/1.0 ticks higher); R (+ 1.0/1.5 ticks); G (+ 1.0/1.5 ticks); B (+

1.0 tick).