In a bid to sell her proposed..........>

GILT SUMMARY: In a bid to sell her proposed withdrawal deal, UK PM Theresa May

is addressing the Confederation of British Industry in London. Getting business

on board will be crucial for May to convince the electorate and parliament to

support the deal.

- For the time being it appears that backbench rebels are still short of the 48

letters needed to trigger a no confidence vote in May. Moreover, at the weekend

Chairman of the 1922 Committee Sir Graham Brady seemed to indicate that some MPs

have lied about submitted letters of no confidence.

- Gilts have rallied across the curve with the 2-year yield pushing down to

0.7097% from 0.738% while the 10-year is down to 1.409% from 1.434%.

- Short-end outperformance has caused the curve to steepen with the 2s10s spread

widening to 68.9bps from 67.3bps.

- The Dec gilt future trades at 122.76 off the morning high of 122.90

- Inflation breakevens have pulled back with the 5-year benchmark inching down

to 3.14% from 3.15%.

- Short sterling futures are down 0.5-2.0 ticks in the whites.