Trial now
CORN TECHS

(H2) Still Looking For Gains

BOE APF PURCHASES

GBP1.147bln of long-dated gilts with offer-to-cover of 1.83x

SOY TECHS

(F2) Holding Onto Most Of Its Gains

US TSY OPTIONS

Early Trade, 2Y Put Sale

Brexit is dominating the headlines.....>

BOND SUMMARY
BOND SUMMARY: Brexit is dominating the headlines. There have now been two
cabinet resignations this morning: the Secretary of State for Work and Pensions
Esther McVey and, more importantly, Brexit Secretary Dominic Raab. The loss of
Raab will not only make it more difficult for May to get parliament on board,
but could also trigger a leadership challenge.
- Gilts have rallied hard with the longer end outperforming the curve. The
10-year gilt trades at 1.381% from a high of 1.486% while the 2s10s spread has
narrowed to 67.6bps from 71.7bps.
- US TSYs are also bid, with the 10-year 5bps richer.
- JGBs are broadly unmoved. Current yields: 2-year -0.141%, 10-year 0.104%,
30-year 0.859%.
- German yields have pushed lower across the curve with the 2-year edging down
to -0.604% from -0.576% and the 10-year is down to 0.351% from 0.406%.
- BTPs have sold off since the open with the 2s10s 4bps steeper.
- Short sterling futures are down 15 ticks in greens/blues. Euroo$ futures are
off 1.0-4.0 ticks across the strip.