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/GILT SUMMARY: Former Conservative minister....>

EGBS
EGBS: /GILT SUMMARY: Former Conservative minister Oliver Letwin has said that he
now sees no other way to legislate against a no-deal Brexit after parliament
rejected yesterday's motion. 
- The result of the first Conservative leadership ballot is expected around
1300BST.
- The rally in gilts has lost momentum with yields now ~3bp lower on the day.
Current yield levels: 2-year 0.574%, 5-year 0.613%, 10-year 0.832%, 30-year
1.436%.
- Bunds lack direction and continue to trade in a tight range. The curve is
marginally flatter.
- The BTP rally has had a second wind since late morning. Yields are 4-6bp lower
and the curve has flattened. 2s10s has narrowed 3bp.
- Euribor futures are flat/0.5 ticks higher. The short sterling futures strip
has flattened wwith greens/blues up 2.5-3.5 ticks.

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