Gilts have squeezed higher during......>

GILT SUMMARY: Gilts have squeezed higher during London morning session,

underpinned by flight-to-quality buying following release of Italy's coalition

government's final programme and concerns over UK's new back-stop offer. Yield

curve is bull steepening as the front end outperforms the ultra long-end.

- 2-yr Gilt yield is -1.4bp at 0.847%, 5-yr -1.4bp at 1.219%, 10-yr -1.4bp at

1.545%, 30-yr -0.3bp at 1.936%, 50-yr -0.2bp at 1.722% according to Tradeweb.

- On a Morning short of any significant data releases attention has been on

Italy once again and the release of M5S and Lega final programme led to a a mild

flight-to-quality bind in Bunds/core EGBs which Gilts duly followed.

- UK PM May is set to outline fresh proposals to avoid a hard border in Ireland

in the next few days, the Times reports. No 10 said any new plan would not

hamper Britain's ability to seek new free trade deals.

- However, there are Rumblings that the EU is unlikely to agree to new UK

backstop on Irish border that was agreed at the beginning of the week

- Short sterling strip is steady to 2 ticks higher led by red and green

contracts. UK T-bill auction was a little disappointing