Addressing the Commons Treasury........>

GILT SUMMARY: Addressing the Commons Treasury committee earlier today, BoE

Governor Mark Carney indicated that under a no-deal Brexit scenario, further

monetary easing could be required. He added that the mounting risk of such a

scenario is weighing on growth.

- The DUPs Arlene Foster has stated that there is an opportunity for the new

prime minister to deal "proactively" with the backstop and has expressed

confidence in both Boris Johnson and Jeremy Hunt to overcome the current

impasse.

- The Sep-19 gilt future trades at 130.61, down 24 ticks from Tuesday's close

and trading near worst levels; L-H: 130.6-130.87.

- Gilt yields are 1-2bps higher on the day. Cash yields (Last / 1d chg / L..H):

2Y (0.5847% / +1.4bp / 0.5732%...0.5847%); 5Y (0.6055% / +1.9bp /

0.5919%...0.6055%); 10Y (0.8127% / +2bp / 0.7978%...0.8127%); 30Y (1.4378% /

+2.1bp / 1.422%...1.4378%)

- The short sterling futures strip has steepened: W (flat/+0.5 ticks); R (-

0.5/1.0 ticks); G (- 1.0/1.5 ticks); B (- 1.0/2.0 ticks).