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Gilts are turning lower and Sterling...>

GILT SUMMARY
GILT SUMMARY: Gilts are turning lower and Sterling higher despite Brexit risk
ahead of a key Cabinet meeting today.
- The Dec 18 Gilt future is down 9 ticks at 120.67, having traded in a range of
120.59-120.78 today.
- Curve flat, 10s underperforming: 2-Yr yield up 0.1bps at 0.819%, 5-Yr is up
0.1bps at 1.171%, 10-Yr up 0.4bps at 1.614%, and 30-Yr up 0.2bps at 2.024%.
- Main event is PM May set to discuss Brexit at Cabinet today. Telegaph reports
eurosceptic ministers set to bring a vote of no confidence in May if she does
not change tack on the Chequers proposal. 
- Against this backdrop, Sterling outperforming amid global FX, up 0.27% at
1.3187 vs USD.
- Short Sterling off a tick further down the strip (Greens and Blues).
- A fairly unexciting outcome is expected in the UK for the Aug labour report.
Unemployment is anticipated to remain unch at 4.0% and earnings including / ex
bonuses are expected to remain at 2.6% and 2.9% 3M Y/Y respectively.

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