Former Chancellor of the Exchequer.....>

GILT SUMMARY: Former Chancellor of the Exchequer Philip Hammond has argued that

no-deal Brexit is as much of a betrayal as staying in the EU. Although Hammond

no longer carries any clout in parliament, he is still a key protagonist among

Tory remainers. 

- Furthermore, both Hammond and Speaker of the House John Bercow have reiterated

that they will fight to prevent the government bypassing parliament in a no-deal

scenario. 

- The Sep-19 gilt future trades at 134.64, up 34 ticks from Tuesday's close and

trading near best levels; L-H: 134.25-134.64.

- The longer end of the gilt curve has rallied. Cash yields (Last / 1d chg /

L..H): 2Y (0.4623% / +0.5bp / 0.4565%...0.4677%); 5Y (0.3505% / 0bp /

0.3464%...0.3571%); 10Y (0.4596% / -3.3bp / 0.4595%...0.4794%); 30Y (1.0662% /

-7.6bp / 1.066%...1.1006%). The curve has flattened: 2s10s (-1.3bp / -3.8bp /

-1.3bp..2.4bp); 2s30s (59.4bp / -8.1bp / 59.4bp..67.6bp).

- Short sterling futures have broadly sold off with reds underperforming: W (-

0.5/3.0 ticks); R (- 3.0/4.0 ticks); G (- 2.0/3.0 ticks); B (- 0.5/1.5 ticks).