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Gilts have underperformed Treasuries...>

GILT SUMMARY
GILT SUMMARY: Gilts have underperformed Treasuries and Bunds despite sterling
being the best performing G10 currency of the day.
- Voting is currently underway in the third round of the Tory leadership contest
with results expected around 18:00BST. The final two rounds of MP voting will be
held tomorrow with the final three announced at 13:00BST before the final two
are announced around 18:00BST.
- The MPC rate decision and Minutes are also released tomorrow at midday BST
with analysts looking for a unanimous 9-0 vote to keep rates on hold, although
there is some chance of either Broadbent, Haldane or Saunders surprising by
voting for a 25bp hike. With the prospect of a no deal Brexit still a
possibility, there is a fairly high bar for the market to price in a
significantly more hawkish path (see our preview).
- 2y yields up 4.2bp today at 0.610%
- 5y yields up 5.0bp today at 0.639%
- 10y yields up 5.5bp today at 0.860%
- 30y yields up 3.0bp today at 1.452%

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