Having recently praised Tory...........>

GILT SUMMARY: Having recently praised Tory frontrunner Boris Johnson and Brexit

Party leader Nigel Farage, it would not be a surprise if the US President sought

to wade further into the Conservative leadership race during his state visit to

the UK.

- With the Conservative leadership hopefuls trying to usurp Boris Johnson,

Foreign Secretary Jeremy Hunt has been the latest contender to indicate that he

would be amenable to a no-deal Brexit if necessary.

- The Sep-19 gilt future trades at 129.9, 11 ticks off the day's low; L-H:

129.79-130.11.

- Gilt yields are 1-2bps lower on the day. Cash yields (Last / 1d chg / L..H):

2Y (0.5771% / -1.8bp / 0.5688%...0.5794%); 5Y (0.6193% / -1.6bp /

0.6104%...0.6212%); 10Y (0.8705% / -1.5bp / 0.8617%...0.8724%); 30Y (1.4574% /

-1.2bp / 1.4483%...1.4592%).

- Short sterling futures have broadly rallied with reds & greens outperforming:

W (+ 0.5/2.5 ticks); R (+ 3.0/4.0 ticks); G (+ 3.0/4.0 ticks); B (+ 2.5/3 ticks)