Leading PM contender Boris Johnson.....>

GILT SUMMARY: Leading PM contender Boris Johnson continued to assert this

morning that the UK will leave the EU by the October deadline and has explicitly

ruled out an extension. In the same instance, Johnson has claimed that he wants

a fully revamped deal rather than tweaking the existing arrangement - a prospect

which Brussels has repeatedly poured cold water on. Furthermore, with members of

his own party threatening to topple the government if no-deal is pursued, the

predicament facing the UK still appears intractable.

- The Sep-19 gilt future trades at 130.58, down 5 ticks from Monday's close and

8 ticks off the day's low; L-H: 130.5-130.81.

- Gilts trade close to unch on the day. Cash yields (Last / 1d chg / L..H): 2Y

(0.5816% / +0.2bp / 0.5717%...0.5871%); 5Y (0.6035% / +0.1bp / 0.5943%...0.61%);

10Y (0.8143% / -0.1bp / 0.8052%...0.8215%); 30Y (1.4371% / +1.1bp /

1.4211%...1.4371%).

- Short sterling futures trade mixed with blues underperforming: W (broadly +

0.0/0.5 ticks higher); R (broadly + 0.0/1.0 ticks higher); G (broadly flat); B

(- 0.5/1.0 ticks)