Gilts are trading lower with the.......>

GILT SUMMARY: Gilts are trading lower with the 10-yr sector seen leading the

way, albeit in very light trade, as markets appear to take positives from

Cabinet agreement on a Brexit customs plan announced Friday, despite the

resignation of Brexit Secretary David Davis. 

- 2-yr Gilt yield is +2.8bp at 0.772%, 5-yr +3.7bp at 1.064%, 10-yr +4.3bp at

1.304%, 30-yr +3bp at 1.738% & 50-yr +3bp at 1.597% according to Tradeweb.

- Brexit headlines have been the key driver of markets Monday being unfazed

about the resignation of Davis as the Brexit Secretary said that May should

remain PM, will not be encouraging other cabinet minister to resign and that he

was the "odd man out" at the Chequers meeting. May has already announced Davis

predecessor as Dominic Raab.

- While the agreement reached in Chequers is seen as delivering the the softest

of soft Brexits, although jury is still out if it will be accepted by the EU.

- Short sterling strip has slipped lower with curve steepening as whites are 0.5

to 1 tick lower and blues are 4 to 5 ticks lower. While breakevens are circa 1bp

tighter and swap spreads are modestly tighter as well