Ahead of the meaningful................>

GILT SUMMARY: Ahead of the meaningful parliamentary vote, opposition towards UK

PM Theresa May's withdrawal deal is heating up. The DUP has reiterated that its

opposition to the backstop provision is unchanged. Dominic Grieve, a

Conservative MP, has tabled an amendment this morning which would require the

government to return within three days to update parliament on its subsequent

plan of action.

- It is still relatively quiet in the gilt market, albeit with a modest sell-off

from around 1135GMT. The 2-year yield trades at 0.766% in the middle of the

day's range, while the 10-year trades at 1.289% off a morning low of 1.275%.

- The curve has flattened on the back of the very long-end outperforming. 2s30s

has traded down to 102.5bps from 104.2bps.

- The Mar-19 gilt future trades at 123.02, down 13 ticks from the high.

- Inflation breakevens have inched higher with the 5-year benchmark trading at

3.188% up from 3.168%.

- Short sterling futures are down 0.5-3.0 ticks with slight underperformance in

greens/blues