Gilts have quickly reversed their higher......>

GILTS: Gilts have quickly reversed their higher opening and are now trading

modestly lower with yield curve ever so slightly bear flattening as short-end

comes under the most selling pressure as markets look ahead to first monthly GDP

data from the UK and PM May survives for now. UK 10-yr Gilt yield is 2.1bp

higher at 1.297%, while 2-yr yield is +2.5bp. 

- Despite the couple of senior cabinet resignation yesterday it appears PM May

is safe in her job for now as although the Brexiteers within her own party have

enough MPs to trigger a leadership challenge, it is thought they still do not

have enough to win a leadership contest and so are biding their time. While

Eurosceptic Jacob Rees-Mogg told reporters they did not expect a confidence

motion to be brought against May after she met the parliamentary party in a bid

to get their support for her plan.

- May also sounded resolute at the despatch box yesterday saying that

preparations for a 'no deal' Brexit would be stepped up and that Parliament

should prepare for a number of different outcomes.

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