MPs are currently voting on the next...>

GILT SUMMARY: MPs are currently voting on the next Speaker of the House of

Commons to replace John Bercow. The new post holder could be influential in

guiding the parliamentary agenda around Brexit. Bercow has previously received

criticism by Brexiteers for supporting efforts by remain MPs to 'frustrate' the

UK's EU departure.

- The Dec-19 gilt future trades at 131.9, down 40 ticks from Friday's close and

trading near worst levels; L-H: 131.87-132.32.

- Gilts have sold off with yields 2-5bps higher on the day. Cash yields (Last /

1d chg / L..H): 2Y (0.5371% / +2.1bp / 0.5249%...0.5374%); 5Y (0.4847% / +2.5bp

/ 0.4729%...0.4893%); 10Y (0.7064% / +4.5bp / 0.6857%...0.7064%); 30Y (1.2156% /

+5.2bp / 1.1964%...1.2156%).

- The curve has bear steepened: 2s10s (16.2bp / 2.4bp / 15.2bp..16.2bp); 2s30s

(67.3bp / 3.1bp / 66.1bp..67.3bp).

- Short sterling futures have broadly sold off with greens underperforming: W

(trades mixed); R (- 1.5/2.5 ticks); G (- 2.5/3.0 ticks); B (+ 2.5 tick).