Gilts have edged lower during..........>

GILT SUMMARY: Gilts have edged lower during morning session of London trade with

little seen to trigger the move apart from soft German Bunds, as market appear

to be in wait in and see mode on key announcement from US President Trump on the

Iran nuclear deal. Curve is slightly steeper as long/ultra long-ebnd comes under

most selling pressure.

- Gilt 2-yr yield is +0.4bp at 0.784%, 50-yr +0.9bp at 1.119%, 10-yr +1.1bp at

1.413%, 30-yr +1.1bp at 1.838% and 50-yr +1.3bp at 1.635% according to Tradeweb.

- Data has been limited to release of latest Halifax house prices which did not

look pretty, falling 3.1% in April, and helped early morning bid in Gilts.

- Gilts gradually reversed gains and slipped lower despite UK politics being in

a muddle with more amendments being voted on the EU withdrawal bill in the House

of Lords. While further discussion on what type of customs arrangement the UK

wants has been postponed for a week.

- Short sterling strip is steady to 2 ticks lower, curve touch steeper, while

breakevens are steady to 1bp wider and swap spreads slightly tighter.