Gilts are trading steady to lower......>

GILT SUMMARY: Gilts are trading steady to lower into NY open with the yield

curve pivoting around the 5-yr/10-yr as markets see a slightly higher chance of

a second Brexit referendum.

- 2-yr Gilt yield is +1.0bp at 0.568%, 5-yr +1.3bp at 0.835%, 10-yr +1.5bp at

1.324% and 30-yr +0.3bp at 1.833%.

- With the UK markets void of any macro data and official speeches attention has

been on comments from former UKIP leader Nigel Farage calling for a second EU

referendum in the hope that it would "kill-off" opposition to Brexit "for a

generation"

- It would appear markets are getting their hopes up that there could be another

referendum and that this time the result would be for the UK to remain in the

EU, following a ComRes poll for the Daily Mirror released today showing that 55%

would back Remain and 45% for Leave.

- Sterling has rallied against the US Dollar and is just about holding ground

against a resurgent Euro. this has not stopped breakevens widening though with

the 5-yr at 3% rising 1bp today. Swap spreads are little changed