MNI: Gilts have held onto modest gains seen around...>

MNI: Gilts have held onto modest gains seen around lunchtime apart from the very

short-end of the curve that has slipped lower, weighed by prospect of quicker

rate rises from the BoE. While the longer-end has been supported by return of

domestic political risk following speech by Labour leader Jeremy Corbyn.

- 2-yr Gilt yield is +0.7bp at 0.703%, 5-yr -0.4bp at 1.018%, 10-yr -1.4bp at

1.507%, 30-yr -1.6bp at 1.908% and 50-yr -1.5bp at 1.691%

- Jeremy Corbyn said that Labour would seek a new comprehensive customs union

with the EU after Brexit and urges MPs from all parties to join the party in its

plan to defeat the Tory government and possible force a new GE

- Gilt Mar/Jun future roll is 77% complete as of close of business Friday and

with a further +130k traded today should push this up to over 90% tomorrow.

- There was some large selling in the very front end of Short Sterling this

morning, but some buying a little further out the curve, as markets digested

hawkish comment from BoE Ramsden. Strip looks set to close mixed with white and

red contracts underperforming.

- 5-yr and 10-yr UK breakevens are -1.2bp, 2-yr swap spreads -2.2bp.