Having suffered a damaging defeat in...>

GILT SUMMARY: Having suffered a damaging defeat in parliament after MPs voted

for legislation to block a no-deal Brexit, Prime Minister Boris Johnson has been

dealt a further heavy blow after his brother Jo Johnson resigned as a

Conservative MP citing his personal conflict between family and the 'national

interest'. Boris Johnson's authority is now under considerable pressure.

- For the time being the opposition Labour Party is still refusing to back a

snap election until a no-deal Brexit is fully 'off the table'.

- The Dec-19 gilt future trades at 132.59, down 136 ticks from Wednesday's close

and trading near worst levels; L-H: 132.53-134.08.

- Gilts have sold off with yields 11-16bps higher on the day. Cash yields (Last

/ 1d chg / L..H): 2Y (0.458% / +10.8bp / 0.4116%...0.4632%); 5Y (0.4461% /

+11.3bp / 0.3983%...0.45%); 10Y (0.6272% / +13.7bp / 0.5685%...0.6304%); 30Y

(1.1571% / +16.4bp / 1.0925%...1.1603%).

- The short sterling futures strip has steepened: W (- 1.0/8.0 ticks); R (-

8.0/9.5 ticks); G (- 10.0/11.5 ticks); B (- 11.0/12.5 ticks).