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In a letter to Labour Leader Jeremy....>

GILT SUMMARY
GILT SUMMARY: In a letter to Labour Leader Jeremy Corbyn, PM Theresa May appears
amenable to making further concessions in a bid to secure additional
parliamentary support for her Brexit deal. However, May does not support a
customs union with the EU, which is a key plank of Jeremy Corbyn's approach to
Brexit negotiations. 
- As noted earlier, PM May will update the House tomorrow, which is only likely
to involve an explanation of why the meaningful vote has been postponed.
- Gilts have been trading sideways since mid-morning with yields near the middle
of the day's ranges. Current yield levels: 2-year 0.712%, 10-year 1.172%,
30-year 1.678%. The 30-year has marginally outperformed on the day.
- The Mar-19 gilt future trades at 124.13, 24 ticks off the low.
- Inflation breakevens have continue to push higher with the 5-year trading up
to 3.161% from a low of 3.135%.
- Short sterling futures are flat/0.5 ticks lower in whites and 0.5-2.0 ticks
lower in reds/greens/blues.

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