A speech by the Queen at the Women's...>

GILT SUMMARY: A speech by the Queen at the Women's Institute in which she talked

of "coming together to seek out the common ground" has been viewed as a

delicately coded message to warring MPs. Although not market moving and with

little direct implications, the Queen's comments reflect the mounting

constitutional stresses and deepening political/social divisions resulting from

Brexit.

- Gilts have been selling off across the curve since mid-morning with yields up

3-4bps from yesterday. Current yield levels: 2-year 0.794%, 10-year 1.305%,

30-year 1.791%.

- The Mar-19 gilt future trades at 122.79 around the lows of the day. 

- Breakevens have been trading in a tight range.

- The short sterling futures strip has steepened slightly with whites down

0.5-1.0 ticks and greens/blues down 2.5-3.0 ticks.

- Having initially faded yesterday's bounce, cable started to rally against from

mid-morning and currently trades at 1.3159.