Following opposition leader Jeremy.....>

GILT SUMMARY: Following opposition leader Jeremy Corbyn's refusal to join

Theresa May for discussions on how to break the Brexit impasse, the prime

minister has indicated that she has given up on cross-party talks. May will

update parliament today on the government's next steps, which will likely

involve renewed efforts to change the terms of the Irish backstop. There has

even been speculation that May could seek to reform the Good Friday Agreement in

a bid to get her Withdrawal deal through parliament.

-  Gilts have rallied since the open with yields down 3-4bps from Friday's

close. The 7-year benchmark  trades at 1.045% down from 1.085% on Friday and has

outperformed the curve.

- The Mar-19 gilt future trades at 122.77 up from a low of 122.56% and has

touched the highs of the day.

- Breakevens are broadly unchanged. Current levels: 5-year 3.091%, 10-year

3.141%.

- The short sterling futures strip has flattened with greens/blues up 3.5-4.0

ticks.