Gilts have recovered losses at the.....>

GILT SUMMARY: Gilts have recovered losses at the open on Monday, with a risk-on

tone reversing somewhat over the last hour.

- Jun 19 Gilt future is down 4 ticks at 125.77.

- The 2-Yr yield is up 1.2bps at 0.811%, 5-Yr is up 1.2bps at 1.012%, 10-Yr is

up 1.1bps at 1.307%, and 30-Yr is up 1.4bps at 1.817%.

- Main Brexit headlines over the weekend surrounded potential Eurosceptic

support for PM May's deal if language around the Irish backstop is strengthened.

- Unclear what changes of substance will/can be achieved though despite EU's

Barnier saying in interview there could be further guarantees/clarifications on

backstop's temporary nature.

- Telegraph reported that UK AG Cox "has abandoned attempts to secure a hard

time-limit or unilateral exit mechanism from the Irish backstop."

- In efforts to secure MPs' support for her deal, May set to announce plans

Monday for Stg1.6bln in investment in 'left behind' U.K. areas.

- February construction PMI due at 0930GMT. The reading fell to 50.6 in January

from 52.8 in December; will be closely watched for any weather related impact.