Following Prime Minister Theresa.......>

GILT SUMMARY: Following Prime Minister Theresa May's decision yesterday to delay

the 'meaningful vote' on her withdrawal deal, she is due to meet with European

Commission President Jean Claude Juncker to see fresh concessions. However,

Juncker has already stated that renegotiation of the current deal is off the

table.

- The prime minister's actions have been met with confusion and has fuelled

speculation that she is fast running out of road.

- The short-end of the gilt curve has lacked direction while the longer-end has

sold off slightly. The 10-year yield has pushed up to 1.229% from 1.211%. The

very long-end has underperformed with the 30-year yield edging up to 1.759% from

a low of 1.716%.

- The curve has steepened with the 2s10s spread widening to 50.7bps from a low

of 49.2bps. 

- Inflation breakevens initially pushed higher, but have since fallen back. The

5-year benchmark trades at 3.224% down from a high of 3.248%.

- The short sterling strip has steepened; greens/blues are down 4.5-5.0 ticks.