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UK PM Theresa May will meet with the...>

GILT SUMMARY
GILT SUMMARY: UK PM Theresa May will meet with the EU's chief Brexit negotiator
Jean-Claude Junker at 16:30 in Brussels in a bid to overcome the current
stalemate. The seemingly intractable nature of the Irish border issue limits the
possibility of a near-term breakthrough. 
- The Gilt curve has flattened as a result of the shorter end selling off. 
- The benchmark 2-year gilt trades at a yield of 0.803% up from 0.785% while the
10-year has oscillated within a 1.583/1.602% range.
- The 2s10s spread has narrowed to 77.5bps from 78.8bps.
- The Dec 18 gilt future has traded sideways since the open and currently at
120.86.
- Inflation breakevens continue to inch lower with the 5-year benchmark trading
down to 3.133% from 3.160%.
- The short sterling futures strip is broadly 2.0 ticks lower. Short sterling
option flow has been thin on the ground this morning. 
- CPI data for September was weaker than expected with the headline reading
coming in at 2.4% Y/Y vs 2.6% survey.

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