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Having long flagged the risks of.......>

GILT SUMMARY: Having long flagged the risks of Brexit to the economy and
previously appearing amenable to a second referendum, Chancellor of the
Exchequer Philip Hammond has now stated that he would stand in the Conservative
leadership race if his views are not 'properly represented'. Given that Hammond
has riled eurosceptic backbenchers with his warnings about Brexit, securing
enough votes from MPs to get down to the final two candidates and then getting
the backing of the party membership would be a tall order. 
- The Sep-19 gilt future trades at 129.47, down 6 ticks from Wednesday's close
and 4 ticks off the day's high; L-H: 129.21-129.51.
- Gilts have sold off with yields 1-3bps higher on the day. Cash yields (Last /
1d chg / L..H): 2Y (0.618% / +2.7bp / 0.6123%...0.62%); 5Y (0.6627% / +1.7bp /
0.6593%...0.6645%); 10Y (0.9094% / +1.8bp / 0.9069%...0.9144%); 30Y (1.5019% /
+1.3bp / 1.4994%...1.5069%). The curve has bear flattened: 2s10s (27.6bp /
-1.8bp / 27.2bp..30.4bp); 2s30s (86.9bp / -2.2bp / 86.5bp..90bp).
- Short sterling futures have broadly sold off : W (broadly - 0.5/1 ticks
lower); R (- 1/1 ticks); G (- 0.5/0.5 ticks); B (flat)

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