Gilts have continued to move higher....>

GILT SUMMARY: Gilts have continued to move higher throughout the London morning.

Recent headlines from ITV Political Editor Robert Peston have stated that the

governments talks with Labour "are very close to being terminated". This follows

overnight headlines that May was still hopeful a deal would be agreed this

summer. Overnight headlines from The Times also suggested that May would plan to

stay on as PM until September in order to get a deal passed in July for an

August Brexit date.

- Our policy team have also published an Insight piece stating that the "UK's

volatile political environment is making the search for the next governor of the

Bank of England more difficult, tilting the scales towards a seasoned,

home-grown appointee with diplomatic skills such as BOE veteran Andrew Bailey"

- The data calendar has been sparse today, with Halifax house price data coming

in stronger than expected.

- Gilt futures are up 0.65 today at 128.19 with 10y yields down -5.2bp at 1.104%

and 2y yields down -3.1bp at 0.715%.