Gilts are opening mixed Thursday,......>

GILT SUMMARY: Gilts are opening mixed Thursday, with the yield curve slightly

steeper as the short-end gains a small bid as markets continue to digest PM

Theresa May's disastrous speech yesterday and the likely impact on her political

career, with the Telegraph already saying that 30 MPs are plotting to remove her

from office. 10-yr Gilt yield is +0.1bp at 1.371%

- The bigger impact though is on Sterling, which has dropped around 0.5% versus

the US Dollar and the Euro. While UK equities are fairing better with the FTSE

currently 0.32% higher.

- So far the 5-yr part of the yield curve is not showing any signs of a

concession being built in ahead of 0.75% 2023 Gilt re-opening auction today.

- Little data from UK today, so attention likely to remain on political

ramifications of PM May's speech, before turning to a raft of US data and then

comments from BoE's Ian McCafferty at the Founders' Company Annual Lecture at

1700BST.

- Swap spreads & breakevens are little changed, as markets look for next

directional move