Foreign Secretary Jeremy Hunt has......>

GILT SUMMARY: Foreign Secretary Jeremy Hunt has suggested that the UK is

prepared to be flexible over how to avoid an indefinite backstop and has

indicated that European leaders were giving 'positive signals' to this effect.

- To further support the financial system ahead of Brexit, the Bank of England

will rollout a euro lending facility next week as well as increasing the

frequency of its regular liquidity operations to weekly from monthly.

- The gilt curve has flattened this morning as long-end yields drift lower. The

2s30s spread trades at 986bps down from 100.4bps. Current yield levels: 2-year

0.785%, 5-year 0.989%, 10-year 1.282%, 30-year 1.779%.

- The Jun-19 gilt future trades at 126.03 near the top of the morning range.

- Cable has weakened a touch and currently trades at 1.3169.

- Short sterling futures are broadly flat in whites/reds and up 0.5 ticks in

blues.