George Eustice, a Brexit-supporting....>

GILT SUMMARY: George Eustice, a Brexit-supporting junior minister, has resigned

following PM Theresa May's decision to give parliament a vote on whether to

extend Article 50 and delay the UK's official departure from the EU. - Although

Eustice is a relatively unknown figure, his parting words in which he stated

that a delay would allow the EU to dictate terms and would be the "final

humiliation of our country", will embolden eurosceptics in parliament ahead of

the meaningful vote.

- The short-end of the gilt curve has lacked direction today, while the belly

and longer-end have sold off. The 10-year benchmark yield is up 2.4bp on the

day, while the 2s10s spread has widened by 3.0bp. Current yield levels: 2-year

0.825%, 10-year 1.302%, 30-year 1.819%.

- The Mar 19 gilt future trades at 123.08 and is now at the day's low.

- Long-dated inflation breakevens have continued to inch higher through the day

with the 10-tear benchmark trading at 3.054% up from a low of 3.023%.

- Short sterling futures are 0.5-1.0 ticks higher in whites/reds  and 0.5-1.0

ticks lower greens/blues.