Gilts have soared against the..........>

GILT SUMMARY: Gilts have soared against the backdrop of disarray in the

government, with PM May`s Brexit deal and her leadership in the balance.

- The Dec 18 Gilt future is up 147 ticks at 123.29, having hit a high of 123.40

today.

- It has been an extraordinarily strong day across the cash curve, with the

belly outperforming: 2-Yr yield down 9.5bps at 0.692%, 5-Yr down 15.3bps at

0.914%, 10-Yr down 14.8bps at 1.358%, and 30-Yr down 7.4bps at 1.909%.

- Short Sterling soaring esp in longer dated contracts; late 2021s up 17 ticks.

- MNI PINCH showing 2019 BOE hike totally priced out, only 70% chance of one by

Dec19, vs prev. 100% prob by Sep19 meeting.

- No respite from Brexit headlines today; next flashpoint will be PM May giving

a press conference at 1700GMT. 

- Speculation swirling over a Conservative Party confidence vote on May`s

leadership; latest is that could be held Monday.