Further stoking speculation of a.......>

GILT SUMMARY: Further stoking speculation of a potential second referendum, Work

and Pensions Secretary Amber Rudd stated that such a possibility was

'plausible'. However, Conservative MP and leading Brexiteer Andrea Leadsom has

stated that this would be 'unacceptable' and has instead argued in favour of a

'managed no deal'. The contrasting positions reflect the entrenched stalemate in

parliament, where no clear majority exists for any Brexit option.

- The sell-off in gilts lost momentum by mid morning. The 2-year currently

trades at a yield of 0.728% from a low of 0.669%, while the 10-year trades at

1.271% from 1.211%.

- The very long-end of the curve has flattened slightly with the 2s30s spread

narrowing to 106.5bps from 108.0bps.

- Market-based measures of inflation expectations have inched lower with the

5-year breakeven trading at 3.130%, down from 3.164%.

- Cable has pushed higher on the back of dollar weakness and currently trades at

1.2698

- The short sterling futures strip is flat/1.5 ticks lower in whites-greens.