With a dearth of data or official......>

GILT SUMMARY: With a dearth of data or official speakers to direct markets,

Gilts have been taking cue from sell-off and the mild recovery in US Treasuries

and German Bunds. The 10-yr part of the yield curve has underperformed the rest

of the curve as majority of the move has been future led. 

- 2-yr Gilt yield +0.3bp at 0.576%, 5-yr +2.0bp at 0.862%, 10-yr +2.6bp at

1.334%, 30-yr +1.4bp at 1.829% & 50-yr +1.1bp at 1.614%.

- 5-yr part of the yield curve recovered from an early morning supply related

sell-off as tail ticked lower to 0.2bp from 0.3bp at the auction

- Closer to home the telegraph has reported that an early Brexit transitional

deal is not a "forgone conclusion" as France tries to drive home its Brexit

advantage according to sources.

- UK Prime Minister May and French President Macron meet in Sandhurst, UK today

and are expected to talk about Brexit, security and boarder checks at Calais.

- Breakevens are trading mixed with 5-yr 1.7bp tighter, while 10-yr and 30-yr

are 0.5bp and 1.2bp wider respectively. Majority of swaps spreads are a touch

wider with exception of the 2-yr which is slightly tighter.