Gilts moved in sympathy with EGBs......>

GILT SUMMARY: Gilts moved in sympathy with EGBs following the release of much

weaker than expected French, German and Eurozone flash PMI data.

- In contrast to Bunds, however, which have largely stabilised since around

9:30BST, gilts have gradually ground higher through the whole morning session.

- This afternoon the Supreme Court will give an update on when it is expected to

announce its ruling on whether the government's move to prorogue parliament was

successful. A ruling is expected later this week and media coverage over the

weekend suggests that the court may rule against the government.

- Also this afternoon, the Labour party will vote on what official position it

should take regarding Brexit. Reports suggest that most (but not all) unions are

against backing Remain, most individual members want to back remain, so the vote

could go either way. It is widely thought that if Labour backs Remain it will be

able to pick up more votes in an election, so the outcome of today's vote will

be important to watch.

- Gilt futures are up 0.89 today at 133.53 with 10y yields down -7.6bp at 0.550%

and 2y yields down -5.5bp at 0.463%.