Government spokesman James Slack has...>

GILT SUMMARY: Government spokesman James Slack has stated that there are no

plans to rewrite today's Brexit motion. It is worth noting that official

statements recently have been heavily couched with 'not planned'. In recent days

PM Theresa May has indicated she does not plan to resign this summer and the

government does not plan to seek a negotiation extension. May also did not

'plan' to hold a snap election in 2017.

- Gilts have been largely trading sideways this morning, albeit with the 10-year

rallying on the back of today's Stg2.25bln auction of the 1.625% Oct-28 gilt.

Current yield levels: 2-year 0.7147%, 10-year 1.1599%, 30-year 1.681%. 2s10s has

traded down to 43.6bps from 45.3bps.

- The Mar-19 gilt future trades at 124.08 near the top of the day's range.

- Inflation breakevens have inched higher. The 5-year trades at 3.127% and

10-year at 3.143%

- Short sterling futures are 0.5-1.5 ticks higher with slight flattening of the

strip.

- Next up on the data calendar are UK retail sales (published tomorrow).