Gilts are weaker Wednesday, with 'No...>

GILT SUMMARY: Gilts are weaker Wednesday, with 'No deal' Brexit risks seen

mitigated by Tuesday's Parliamentary developments.

- Mar 19 Gilt future is down 24 ticks, on day's low at 122.95.

- The belly of the curve is underperforming; 2-Yr yield is up 2.9bps at 0.76%,

5-Yr up 3.3bps at 0.908%, 10-Yr up 3.1bps at 1.312%, 30-Yr up 2.2bps at 1.943%.

- The Brexit game theory has become even more muddled, with Tuesday seeing big

parliamentary defeats for PM May`s government.

- Parliament will have a say in the `Plan B` to May`s withdrawal agreement

should it fail to pass (as appears to be the case) on Dec 11. 

- But there remains uncertainty as to whether whatever Brexit options Parliament

agrees would be binding on the government, or whether Brussels would be willing

to renegotiate. 'No deal' Brexit may yet be the default setting.

- After being found in contempt of Parliament in an unprecedented vote Tuesday,

the govt will publish Brexit legal advice at 1130GMT.

- Nov Services PMI out at 0930GMT; Chancellor Hammond appears before the Treas

select committee at 1300GMT.