Gilts are moving higher this...........>

GILT SUMMARY: Gilts are moving higher this morning, bucking the trend in core

fixed income markets.

- It is looking increasingly likely that any Brexit deal can be agreed ahead of

the European elections later this month but The Times have reported today that

Theresa May is still hopeful that she can get a deal agreed with Labour by the

summer. This would likely mean that May remained in power until September

(longer than many backbenchers would like). Reports going forward are likely to

focus on whether the 1922 Committee will proceed with changing the party rules

to allow another confidence vote to be held before December.

- It is fairly quiet on the UK calendar today with the only data release Halifax

house prices due at 8:30BST. BoE Deputy Governor Dave Ramsden is due to speak at

9:15BST at the Association for Financial Markets in Europe with text to be

published.

- Gilt futures are up 0.17 today at 127.71

- 10y cash yields are down -1.0bp at 1.146%.

- 2y yields are down -0.6bp at 0.740%.