Following Prime Minister's Questions...>

GILT SUMMARY: Following Prime Minister's Questions today PM Theresa May headed

to Brussels in a bid to secure an Article 50 extension.

- German Chancellor Angela Merkel has further fuelled expectations that the EU

will offer the UK a lengthy extension, rather than the short reprieve sought by

PM May. Furthermore, a spokeswoman for the French government has warned that

although France is open to this possibility, it will not be automatic. 

- Having sold off during the morning session, gilts subsequently rallied from ~

1335BST. Yields are now back near yesterday's closing levels. Current yield

levels: 2-year 0.692%, 5-year 0.836%, 10-year 1.095%, 30-year 1.634%.

- The Jun-19 gilt future trades at 128.27 near the top of the day's range.

- Short sterling futures are broadly 0.5-3.0 ticks higher on the day.