At the time of writing, UK PM..........>

GILT SUMMARY: At the time of writing, UK PM Theresa May is addressing parliament

in relation to the withdrawal agreement. Just one member of parliament has

openly supported the deal, with all other members across the house lambasting

the agreement. May is looking increasingly isolated and her position tenuous.

- Gilts have rallied hard since the open, but given back some of the gains over

the past 90 minutes. The 2-year benchmark trades at 0.7195% off a morning low of

0.681% and the 10-year trades at 1.411% from a low of 1.371%.

- The curve has flattened with the 2s10s spread narrowing to 67.9bps from

71.7bps.

- The Dec gilt future trades at 122.71 off the high of 123.15.

- Short sterling futures have pushed higher with greens/blues up 11 ticks.

- Inflation breakevens have surged with the 5-year benchmark trading up to

3.164% from a low of 2.999% in line with a sharp drop in sterling. Cable is 1.5%

lower on the day.