/Gilt Summary: Gilts have got off to the.......>

EGBS: /Gilt Summary: Gilts have got off to the soft start with yields ~1bp lower

on the day. Current yield levels: 2-year 0.728%, 5-year 0.855%, 10-year 1.124%,

30-year 1.667%. The Daily Telegraph reports that Chancellor of the Exchequer

Philip Hammond has warned PM May that talks with Labour are being held on a

'false promise'. 

- Meanwhile, Deputy opposition leader Tom Watson has argued that Labour is a

'remain and reform' party on the EU; somewhat at odds with Jeremy Corbyn's

position.

- There has been limited movement in core EGBs this morning with trading in a

relatively tight range. German bund current yield levels: 2-year -0.564%, 5-year

-0.266%, 10-yea0.345%, 30-year 1.393%.

- Italian BTPs have been under pressure with the belly of the curve

underperforming slightly. The 7-year benchmark trades at a yield of 2.152% up

from a low of 2.101%.

- Euribor futures are broadly flat/0.5 ticks higher.