It has been an uneventful London.......>

GILT SUMMARY: It has been an uneventful London morning session with a rather

muted reaction in wake of official start to US/China import tariffs with eyes

seen firmly on US jobs data released this afternoon. Gilts are currently steady

to lower with the short-end of the yield curve coming under some light selling

pressure and in-turn flattening the yield curve.

- 2-yr Gilt yield is +0.6bp at 0.73%, 5-yr +0.4bp at 1.014%, 10-yr +0.1bp at

1.255%, 30-yr -0.5bp at 1.703% & 50-yr -0.3bp at 1.559% according to Tradeweb.

- Sep Gilt future opened lower, but quickly pared losses as markets appeared

sanguine about the start of the US/China trade spate and Brexit headlines were

limited to talk of ex-PM Cameron persuading Boris Johnson to sign up with PM

May's latest customs deal.

- Markets are keeping one eye on if there will be any cabinet resignations

within the government and another on US jobs data at 1330BST.

- Short Sterling strip has pared some of their earlier move lower, but red and

green contracts remain 1 tick lower on the day. 30-yr breakevens are 0.7bp wider

while swap spreads are little changed.