A government spokeswoman has...........>

GILT SUMMARY: A government spokeswoman has confirmed that PM Theresa May will

travel to Germany and France to meet with Chancellor Merkel and President

Macron, respectively. 

- Furthermore, May has reportedly been in contact with Labour over the weekend

with talks expected to resume today. Although May has indicated that she wants

the UK to have an independent trade policy, she continues to stress that

compromise is required to get a deal agreed.

- Reflecting the deepening rift between the PM and her party, leading

eurosceptic Boris Johnson penned an article in the Telegraph insisting that MPs

would not "surrender" to Jeremy Corbyn in reference to rumours that May could

support a customs union to get a deal passed in parliament.

- It has been a relatively quiet session so far for gilts with yields near

Friday's close. Current yield levels: 2-year 0.700%, 5-year 0.849%, 10-year

1.105%, 30-year 1.648. The Jun-19 gilt future trades at 128.09, near the middle

of the morning range.

- Short sterling futures are broadly 0.5-1.5 ticks higher.