115/259 councils have now declared.....>

GILT SUMMARY: 115/259 councils have now declared the results of the local

elections. Results: Conservatives 1278 (-460), Labour 954 (-73), Lib Dem 580

(+313), Green 52 (+44), UKIP 17 (-54), Smaller Parties/Independents 372 (+230).

- Focus obviously is on the losses being racked up by the ruling Conservatives.

600 seems to be baseline with >800 becoming a bit of a disaster for the Blues.

Labour is also facing increased scrutiny, particularly following the losses

incurred in Sunderland. Labour's prevarication on its Brexit stance is likely to

be costing the party votes.

- With both PM May and Labour leader Jeremy Corbyn becoming adept at deflecting

internal party pressure, the impact of the local election will be limited.

- Gilts are softer today, but trading is in a relatively tight range. Current

yield levels: 2-year 0.775%, 5-year 0.927%, 10-year 1.202%, 30-year 1.713%.

- The Jun-19 gilt future trades at 127.08 and in the middle of the days range.

- The short sterling futures strip has steepened slightly. Greens/Blues are down

1.0-2.0 ticks.

- The UK will observe a bank holiday on Monday.