Gilts are taking cue from sharp fall in.......>

GILTS: Gilts are taking cue from sharp fall in German Bunds due to hawkish

rhetoric from ECB Praet and Weidmann. While newswire reports of Labour shifting

its position to a more soft Brexit likely weighing as well despite it putting

more pressure in PM May.

- 10-yr Gilt yield is 4.1bp higher at 1.327% according to Tradeweb and leading

the rest of the yield curve higher with 2s/10s 0.7bp stepper and 10s/30s 0.7bp

flatter.

- The Time have reported that Labour has shifted its position on Brexit and will

commit his party to retaining the main elements of Britain's relationship with

the European Union after Brexit. Corbyn is expected to offer a motion call for

full access to EU's institutions.

- There is no data from the UK today, however BoE McCafferty takes part in e

radio phone-in toi be braodcast at 1600BST, while BoE Tenreyro is in Belfast at

the CBI Economic Briefing.

- Short Sterling strip has steepened with blue contracts 4 ticks lower, while

whites are steady to 2 ticks lower.