With the EU granting a lengthy.........>

GILT SUMMARY: With the EU granting a lengthy Brexit extension and the House of

Commons now in recess, the slew of Brexit-related headlines has slowed to a

trickle. There is also no UK data scheduled for release today. 

- Despite the dearth of UK-specific market drivers, gilts have been caught up in

the risk-on move following the release of better than expected aggregate

financing data in China.

- Gilt yields are ~2-3bp higher on the day. Current yield levels: 2-year 0.751%,

5-year 0.904%, 10-year 1.183%, 30-year 1.702%. The curve has steepened slightly

on the back of the longer-end underperforming. The 2s10s spread has widened to

42.2bps from a low of 40.7bp.

- The Jun-19 gilt future trades at 127.25 and near the lows of the day.

- Short sterling futures are 0.5-3.5 ticks lower with greens/blues

underperforming. 

- Looking ahead, next week will see the release of employment and wage data for

February, inflation data for March and retail sales data also for March.