UK markets are the big story in FI.....>

BOND SUMMARY: UK markets are the big story in FI markets this morning following

UK parliament's vote to reject no deal last night, fuelling a risk on tone in FI

markets.

- UK futures and cash bonds gapped lower at the open with gilt futures down 0.6%

to 126.57 at time of writing. 10y cash gilt yields are up 4.0bp to 1.237%, 2y

yields up 3.5bp to 0.778%. The 10y has seen the biggest moves with a slight

steepening of 2s10s and flattening of 10s30s. Most of the Short Sterling strip

has shifted 3 ticks lower, with some steepening of the curve in the White area.

- USTs are a little softer on the day with TY1 down 0.23 to 122.64. 10y UST

yields are up 1.3bp to 2.64% while 2y yields are flat at 2.47%.

- Bunds are also a little lower on the day with futures down 0.21 to 164.26, 10y

Bund yields are up 1.7bp to 0.08% while Schatz yields are up 0.5bp to -0.54%.

- Peripheral spreads are tighter across the Eurozone with BTP-Bund spreads 5.2bp

tighter at 311bp.

- The day ahead is pretty quiet on both the data and the speaker front with the

UK parliament due to vote on an extension to Article 50 tonight around 19:00GMT.