Gilts have rallied since.......>

GILT AUCTION PREVIEW: Gilts have rallied since mid-morning with trading ranges

relatively contained. 1-10-year yields are <1.5bp higher from yesterday's close,

while the 30-year yield trades 0.9bp lower. Current yield levels: 2-year 0.783%,

5-year 0.984%, 10-year 1.275%, 30-year 1.767%.

- The curve has flattened throughout the day with the 2s30s spread trading down

to 97.5bps from 100.4bps.

- The Jun-19 gilt future trades at 126.11 near the middle of the day's range and

13 ticks off the high.

- Labour's Shadow Chancellor John McDonnell suggested that not many Labour MPs

will back PM Theresa May's Brexit day, which triggered a mildly negative

reaction for cable.

- Short sterling futures are flat in whites and broadly 0.5-1.5 ticks higher in

greens/blues.