In the end there was no hawkish........>

GILT SUMMARY: In the end there was no hawkish surprise in terms of the voting

split at today's BoE meeting, with the MPC still unanimous at 9-0. However,

Governor Mark Carney did suggest that policy rate hikes could become more

frequent if the economy performs as expected.

- The furore over the sacking of Defence Secretary Gavin Williamson rumbles on.

Foreign Secretary Jeremy Hunt has stated that the police should decide whether

to launch a criminal investigation. Meanwhile, the Commissioner of the

Metropolitan Police Cressida Dick has indicated that a criminal investigation is

only likely if the government refers the matter to the Met. With that in mind,

May is unlikely to pursue the matter further for fear of dragging out the

incident and further exposing a lack of leadership in government. 

- The gilt curve has steepened through the session on the back of the longer-end

underperforming. Current yield levels: 2-year 0.759%, 5-year 0.905%, 10-year

1.178%, 30-year 1.700%.

- The short sterling futures strip has steepened with greens/blues down 3.0-4.0

ticks on the day.