Following yesterday's parliamentary....>

BOND SUMMARY: Following yesterday's parliamentary defeat of UK PM Theresa May's

Brexit deal, MPs are gearing up for a vote on 'no-deal' Brexit. It is most

likely that MPs will support a Brexit extension, but parliament is in

unchartered waters and the situation remains highly fluid.

- UK Chancellor of the Exchequer Philip Hammond will present the spring budget

statement after PMQs today.

- Gilts have been relatively unfazed by yesterday's vote. Yields are up

~1.6-1.7bp across the curve. Current yield levels: 2-year 0.729%, 5-year 0.908%,

10-year 1.180%, 30-year 1.705%.

- US TSYs are similarly a touch weaker and the curve steeper. The 2s30s spread

trades at 54.4bps up from a low of 52.7bps.

- The Jun-19 JGB future trades at 152.86 in the middle of the morning range.

- The German bund curve has steepened, with 2s30s up 2bp on the day.

- Trading in Italian BTPs have been relatively quiet so far with yields up

~1.5-3.5bp.

- Euro$ futures are down 0.25-1.5 ticks.