- Despite UK PM Theresa May's..........>

BOND SUMMARY: - Despite UK PM Theresa May's unprecedented parliamentary defeat

yesterday (losing the meaningful vote by 230 with 118 Tories also voting against

the government), the gilt sell-off has been relatively contained. Selling

pressure has been most intense for the 10-year benchmark, which trades at 1.300%

from 1.256% at yesterday's close.

- Yields at the longer end of the US TSY curve have pushed higher with the

30-year trading at 3.097% off a morning low of 3.063%.

- German bund yields are 1-3bps higher across the board. The curve has steepened

slightly with 2s30s trading up to 145.2bps from a low of 142.6bps. The Mar-19

bund future has pushed down to 164.53, near the lows of the morning.

- The French OAT curve has similarly steepened with 2s10s and 2s30s up around

3bps.

- Italian BTPs have rallied since the open, with the 5-year benchmark

outperforming the curve on the day. 

- Euro$ futures are 0.5-3.0 ticks lower. Euribor futures are flat in whites and

down 0.5-2.0 ticks in reds/greens/blues.