Gilts have traded strongly through.....>

GILT SUMMARY: Gilts have traded strongly through the morning as PM May is set to

meet with lawmakers who proposed a Brexit compromise later today.

- The government have renewed their determination to push through Brexit by the

Mar 29 deadline today, cancelling the February recess whilst Parliament has

binned the restoration programme that was due for half-term. 

- Despite this, Foreign Secretary Jeremy Hunt told BBC R4 that Article 50 may

have to be extended to avoid a no deal scenario on the 29th should a deal be

agreed only days before. 

- The extension would allow critical legislation regarding implementation of the

deal to pass in parliament rather than to begin any new negotiations.

- The Mar-19 Gilt future is up 26 ticks at 123.46 having traded in a range of

123.36-123.57 today. 

- The 2s10s curve has seen a 0.4bps flattening, lead by outperformance in the

10yr section where yields are down 2bps at 1.235%. 

- The ultra-long end of the curve has underperformed; 30yr yields down 0.7bps,

50yr down 0.6bps. The 5s30s is 1.2bps steeper, 10s50s 1.4bps steeper.