Following speculation that.............>

GILT SUMMARY: Following speculation that Conservative MPs were plotting to oust

Theresa May, several leading Brexiteers were invited to Chequers yesterday for

discussions with the prime minister. The list included Boris Johnson and Jacob

Rees-Mogg.

- According to the ITV's Robert Peston, May has indicated that she will step

down if her deal is supported. This has not yet been confirmed.

- Secretary of State for International Trade Liam Fox argued this morning that

the 'real debate is about the future of UK ties with the EU, in what is likely

an attempt to reach out to fellow Brexiteers to support May's deal. However, he

further stressed that he would back no deal if necessary.

- Gilts have started the session on a weak footing with yields 1bp higher from

Friday's close. Current yield levels: 2-year 0.661%, 5-year 0.786%, 10-year

1.024%, 30-year 1.498%. 

- The Jun-19 gilt future trades at 129.04.

- Short sterling futures trade mixed. Whites are flat/0.5 ticks lower.

Reds/greens are broadly 0.5-1.0 ticks higher.