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UK PM Theresa May has indicated that...>

GILT SUMMARY
GILT SUMMARY: UK PM Theresa May has indicated that an extension to the Brexit
transition period is being considered as a means of breaking the current
deadlock in negotiations.
- Retail sales data for September were weaker than expected with the ex Auto
Fuel series down -0.8% Y/Y vs -0.4% survey.
- Gilts have rallied since mid morning and the curve has steepened. 
- The 2-year benchmark trades at 0.788% down from 0.812% while the 10-year is
down to 1.5797% from 1.597%.
- The 2s10s spread has traded up to 78.4bps from 76.8bps and the 2s30s has
widened to 116.6bps from 114.8bps.
- The Dec Gilt future has edged up to 120.96 from a low of 120.73.
- There has been similarly limited movement in inflation breakevens with the
5-year benchmark inching down to 3.104% from 3.115% and the 10-year down to
3.160% from 3.170%.
- The short sterling futures strip is broadly flat to 1.0 ticks lower. We have
observed little in the way of short sterling option flow this morning.

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