/GILT SUMMARY: US President Donald Trump has...>

EGBS: /GILT SUMMARY: US President Donald Trump has urged PM Theresa May to

'stick around' to secure a 'substantial' trade deal. As it stands, May is due to

formally resign on Friday, with the Conservative leadership election getting

underway on Monday. Perhaps in a sign that the election race has become crowded,

James Cleverly has decided to pull his candidacy. The move follows an

announcement earlier this morning by arch Brexiteer Liam Fox that he is backing

Foreign Secretary Jeremy Hunt. 

- It has been a relatively quiet session for gilts so far with yields holding

near yesterday's closing levels. Current yield levels: 2-year 0.568%, 5-year

0.614%, 10-year 0.865%, 30-year 1.452%.

- EGBs have had a livelier start, spurred on by a weaker CPI print for May and

the possibility of a more dovish message from the ECB this week.

- The German bund curve has flattened with 2s30s narrowing ~2bp.

- The very long-end of the French OAT curve has outperformed with the 30-year

benchmark yield down 4bp.

- Italian BTPs have been bid with the 2-year yield down 6bp on the day.