Gilts have just recovered from.........>

GILT SUMMARY: Gilts have just recovered from earlier mild risk-on tone losses

due to latest Brexit headlines crossing the wires about there not going to be a

second EU referendum in "any circumstances".

- 2-yr Gilt yield is +0.3bp at 0.747%, 5-yr -0.2bp at 1.026%, 10-yr unch at

1.272%, 30-yr unch at 1.726% & 50-yr -0.1bp at 1.577% according to Tradeweb.

- Gilt future opened little changed but then edged lower in light volume, as

markets digested latest Brexit news that one senior conservative, Justine

Greening, supported calls for a 2nd EU referendum. This comes at another crucial

week for PM May as the Trade and Customs Bill is debated in the House of

Commons, with a number of amendments already being tabled.

- Comments from PM May's spokesman that there will be no 2nd referendum under

any circumstances then saw Gilts reverse losses.

- No data from the UK today, however the rest of the week is full with labour

data tomorrow, CPI data on Wednesday, retail sales on Thursday and public

borrowing numbers on Friday. Feeling is that the data has to come in very weak

for markets to price out the chance of a BoE rate hike in August.