As the Conservative party election.....>

GILT SUMMARY: As the Conservative party election race takes a brief pause, news

flow has been relatively light. Mark Carney earlier warned that the UK would

face tariffs on exports to the EU under a no-deal scenario, contradicting claims

made by Boris Johnson that this could be avoided. 

- The Sep-19 gilt future trades at 130.23, 10 ticks off the day's low; L-H:

130.13-130.56.

- Gilts have sold off today with yields 3-4bps higher. Cash yields (Last / 1d

chg / L..H): 2Y (0.6034% / +3.4bp / 0.5839%...0.605%); 5Y (0.6286% / +3.5bp /

0.6082%...0.6309%); 10Y (0.8441% / +3.9bp / 0.8229%...0.8466%); 30Y (1.4477% /

+2.7bp / 1.4269%...1.4501%).

- The short sterling futures strip has steepened: W (broadly - 0.0/3.5 ticks

lower); R (- 3.5/4.5 ticks); G (- 3.5/4.0 ticks); B (- 4.0/4.5 ticks).

- Looking ahead, next week will see the release of the final Q1 GDP estimate,

current account data and the Nationwide House Price index for June.