PM Boris Johnson is expected to ask....>

GILT SUMMARY: PM Boris Johnson is expected to ask the queen to prorogue/suspend

parliament in a bid to thwart efforts by MPs to block a potential no-deal

Brexit. This is a high-risk move for the prime minister in light of the thorny

constitutional issues of suspending a democratic parliament. Calls for a

no-confidence vote are already ratcheting up, although even in the event of

Johnson losing the vote the government could opt to hold a general election

after the October 31 Brexit deadline.

- The Sep-19 gilt future trades at 135.48, up 43 ticks from Tuesday's close and

15 ticks off the day's high; L-H: 135.06-135.63.

- Gilts have rallied with yields 2-4bps lower on the day. Cash yields (Last / 1d

chg / L.H): 2Y (0.3393% / -2.1bp / 0.3238%...0.3438%); 5Y (0.2973% / -2.7bp /

0.2836%...0.3048%); 10Y (0.4637% / -3.6bp / 0.4504%...0.475%); 30Y (1.0168% /

-2.1bp / 1.003%...1.0269%)

- The short sterling futures strip has flattened: W (+ 0.5/4.0 ticks); R (+

3.5/4.0 ticks); G (+ 4.0/4.5 ticks); B (+ 4.0/4.5 ticks)