Having earlier pledged to increase.....>

GILT SUMMARY: Having earlier pledged to increase spending on infrastructure

projects, Chancellor of the Exchequer Sajid Javid has further indicated that he

is seeking to boost the national minimum wage.

- The Dec-19 gilt future trades at 134.46, up 38 ticks from Friday's close and

trading near best levels; L-H: 133.9-134.47.

- Gilts have rallied with yields broadly 3-4bps lower on the day. Cash yields

(Last / 1d chg / L..H): 2Y (0.3421% / -4bp / 0.342%...0.3659%); 5Y (0.2618% /

-4.1bp / 0.2618%...0.284%); 10Y (0.4662% / -3.1bp / 0.4662%...0.4896%); 30Y

(0.9595% / -0.5bp / 0.9579%...0.9766%)

- The curve has bull steepened: 2s10s (11.1bp / 1.1bp / 10.6bp..11.8bp); 2s30s

(60.3bp / 3.6bp / 59bp..60.4bp).

- The short sterling futures strip has flattened: W (+ 1.0/2.5 ticks); R (+

2.5/3.0 ticks); G (+ 3.0/4.0 ticks); B (+ 3.0/4.5 ticks).