/GILT SUMMARY: The first ballot for the........>

EGBS: /GILT SUMMARY: The first ballot for the Conservative election race will

take place today with results expected by 1300BST. Candidates need to secure 5%

support to proceed from the first round. If all candidates win 5% or more votes,

the candidate with the lowest number of votes is removed from the list.

- In an attempt to curry favour with eurosceptic MPs ahead of the vote Sajid

Javid has stated that no-deal Brexit would be preferable to no Brexit at all.

- Gilts have firmed from the open with yields 2-3bp lower. Current yield levels:

2-year 0.579%, 5-year 0.622%, 10-year 0.841%, 30-year 1.447%.

- EGB curves have flattened against a backdrop of mounting expectations of

further ECB policy easing. This is far from being a done deal, with our recent

ECB sources story indicating that some officials see scope to restart the PSPP

if economic conditions worsen, while others question whether it is viable.

Nonetheless, the probability of further easing has ticked up.

- The short end of the Bund curve has weakened a touch while longer end yields

have inched lower.

- French OAT yields: 2-yr -0.614%, 5-yr -0.426%, 10-yr 0.097%, 30-yr 1.079%