Conservative leadership frontrunner....>

GILT SUMMARY: Conservative leadership frontrunner Boris Johnson has indicated

that he is willing to take part in a televised debate on the BBC with the other

candidates. This is likely to be a pivotal moment for his campaign. If he had

refused to take part his rivals could argue that he would be a weak leader.

However, now that he is taking part, the other candidates now have an

opportunity to close the gap in the leadership race. 

- The Sep-19 gilt future trades at 130.3, down 4 ticks from Thursday's close and

25 ticks off the day's low; L-H: 130.05-130.68.

- Gilt yields (Last / 1d chg / L..H): 2Y (0.5853% / +0.4bp / 0.5848%...0.6077%);

5Y (0.6192% / +0.1bp / 0.6188%...0.641%); 10Y (0.8384% / +0.4bp /

0.8382%...0.8605%); 30Y (1.4267% / -0.2bp / 1.4267%...1.4503%). The curve has

flattened: 2s10s (24.2bp / -0.4bp / 23.6bp..24.3bp); 2s30s (83.1bp / -1bp /

82.7bp..83.2bp).

- Short sterling futures have broadly rallied with greens slightly

outperforming: W (+ 0.5/1.5 ticks); R (+ 0.5/1.5 ticks); G (+ 1.0/2.0 ticks); B

(+ 1.0/2.0 ticks).