/GILT SUMMARY: UK Chancellor of the...........>

EGBS: /GILT SUMMARY:  UK Chancellor of the Exchequer Philip Hammond has

indicated that he is prepared to vote against a Boris Johnson government in the

event of a no-deal Brexit being pursued. Hammond's statement reflects growing

resistance in parliament towards no-deal, with MPs yesterday voting to scupper

any attempting to bypass lawmakers and push through a no-deal.

- Gilts trade marginally firmer on the day. Current yield levels: 2-year 0.516%,

5-year 0.524%, 10-year 0.747%, 30-year 1.379%.

- The German bund curve has steepened with 2s10s trading up ~2bp on the day.

- French OAT yields have inched lower and the curve is slightly steeper.

- BTPs remain heavy following this morning's statements from a League official

which has renewed concerns about the stability of the coalition government. The

10-year BTP has led the sell-off. Current yield levels: 2-year -0.001%, 5-year

0.8500%, 10-year 1.617%, 30-year 2.680%.  

- The Euribor futures strip has flattened with greens/blues up 2.5-3.5 ticks.