Gilts have recovered from early........>

GILT SUMMARY: Gilts have recovered from early weakness, after UK PM May's win

last night removed a leadership fight from the long list of Brexit

uncertainties.

- The Mar 19 Gilt future is up 3 ticks at 123.41, having traded in a range of

123.12-123.42 today.

- Across the cash curve yields are mixed but uniformly down. The 2-Yr yield is

down 1.3bps at 0.737%, 5-Yr is down 1.7bps at 0.877%, 10-Yr is down 1.8bps at

1.261%, and 30-Yr is down 2.7bps at 1.804%.

- Sterling has gained from yesterday's vote, GBPUSD trading at 3 day highs, with

Short Sterling futures slightly lower. 

- May flies out to Brussels today seeking legally binding pledges from EU

leaders on the Irish backstop, UK markets expected to stay sensitive to

headlines.

- No key UK data for the rest of the week; attention today on ECB decision.