After jumping on the open, Gilts are...>

GILT SUMMARY: After jumping on the open, Gilts are trading a little softer as a

decidedly risk-off atmosphere has faded slightly. 

- Dec18 Gilt future is up 17 ticks at 121.73, having earlier touched a high of

121.88.

- The 2-Yr yield is down 1.8bps at 0.748%, 5-Yr is down 2.4bps at 1.074%, 10-Yr

is down 2.5bps at 1.502%, and 30-Yr is down 1.8bps at 1.906%.

- Short Sterling futures are a little stronger, up 2.0-3.0 ticks across most of

the strip.

- General sense from PM May's statement to Parliament late afternoon Monday is

that a UK/EU agreement is still some way off, though a leadership challenge from

within the Conservative party also looks to have receded.

- Equity movements (FTSE below 7,000, off 0.7% thus far Tuesday) and

developments between the EU and Italy likely to set the tone.

- BoE's Haldane & Carney on the speaking slate today; CBI Business Optimism the

only key data.