Gilts continue to head lower...........>

GILT SUMMARY: Gilts continue to head lower Wednesday as Tuesday`s Brexit delay

bombshells continue to be digested.

- The active Gilt future has rolled from March to June; the Jun19s are down 20

ticks at 126.69.

- Weakness in the cash curve is concentrated at the short end. The 2-Yr yield is

up 2bps at 0.811%, 5-Yr is up 1.9bps at 0.959%, 10-Yr is up 1.7bps at 1.223%,

and 30-Yr is up 0.8bps at 1.756%.

- All game theory in Parliament as next month's votes on the Withdrawal bill/no

deal/Art. 50 extension are considered.

- Mixed signals from Conservative MPs about supporting May's Deal, with

arch-Eurosceptic Jacob Rees-Mogg no longer insisting on the scrapping of the

'Irish backstop'. Others reportedly supportive conditional on May stepping down

later in the year.

- Voting later on Wednesday's motion. Independent Group MPs looking to table an

amendment paving the way to a second EU referendum.

- Only data point: BRC Shop Prices overnight, rose 0.7% Y/Y in Feb (exp 0.3%).