In a bid to salvage some credibility...>

GILT SUMMARY: In a bid to salvage some credibility following yesterday's

parliamentary defeat, PM Theresa May has told the EU that her Withdrawal

Agreement can still pass through parliament. Meanwhile, remain-supporting

Conservative MP Dominic Grieve has warned that a dozen ministers (including six

in the cabinet) could resign under a no-deal scenario.

- The gilt curve has steepened today as longer-end yields have drifted lower,

while the shorter-end has rallied. Current yield levels 2-year: 0.716%, 10-year

1.158%, 30-year 1.678%. The 2s30s spread has pushed up to 95.0bps from a low of

93.0bps.

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

- The short sterling futures strip is 0.5-1.5 ticks lower with slight

underperformance in blues.

- Looking ahead to next week, labour market data will be published on Tuesday

and public sector finance data on Thursday.