/GILT SUMMARY: Former Brexit Secretary.........>

EGBS: /GILT SUMMARY: Former Brexit Secretary Dominic Raab has argued that the

new UK prime minister could ignore efforts by parliament to block a no-deal

Brexit. Furthermore, he suggested that any Tory MP contemplating voting down the

government would ultimately relent given the possibility of ushering in a Corbyn

government.

- Gilts have traded weaker today with yields 1-2bp higher. Current yield levels:

2-year 0.582%, 5-year 0.5997%, 10-year 0.807%, 30-year 1.436%.

- Core EGB yields have similarly inched higher. The German bund curve has bear

steepened with 2s30s up ~2bp.

- French consumer confidence data for July was marginally higher than expected.

The long-end of the OAT curve is underperforming slightly. Current yields:

2-year -0.672%, 5-year -0.499%, 10-year 0.012%, 30-year 0.945%.

- ANSA reports that approval of Italy's budget update has been postponed, having

initially been up for discussion during today's cabinet meeting. There has been

no discernible impact on BTPs which have rallied since mid-morning.