Gilts have sold off this afternoon.....>

GILT SUMMARY: Gilts have sold off this afternoon and have marginally

underperformed USTs and Bunds.

- After a successful 20-year linker auction this morning, focus has turned to

politics. The Labour party have formally stated that they are against any no

deal Brexit as well as any Tory party Brexit deal agreed. What is less clear is

what they would do if there was an election and they were in power.

- One of the Grieve amendments will be voted on tonight which would set dates

for parliament to meet until the end of December. However, the more meaningful

amendment that would have stopped the new PM proroguing parliament to push

through a no deal has not passed, and without this any move would be toothless.

The vote is expected around 7pm BST.

- Tonight will see Hunt take on Johnson in a debate live on ITV. With Johnson

odds-on favourite, this may be Hunt's last chance to make ground with the Tory

party membership.

- Gilt futures are down -0.35 today at 131.52 with 10y yields up 1.9bp at 0.732%

and 2y yields up 1.1bp at 0.552%.