PM Boris Johnson's election campaign...>

GILT SUMMARY: PM Boris Johnson's election campaign has got off to a bumpy start

with continued criticism of comments made by the high-profile Tory Jacob

Rees-Mogg on the Grenfell Tower fire and a resignation from Welsh Secretary Alun

Cairns.

- All eyes will be fixed on the Bank of England tomorrow. Although no material

change in policy is expected, the focus will be on the Bank's Brexit scenarios

and whether these have been adjusted in light of the snap election.

- The Dec-19 gilt future trades at 131.54, up 22 ticks from Tuesday's close and

6 ticks off the day's high; L-H: 131.05-131.6.

- Gilts have rallied with yields 3-4bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.5531% / -2.8bp / 0.5496%...0.5617%); 5Y (0.5201% / -2.9bp /

0.516%...0.5294%); 10Y (0.734% / -3.9bp / 0.729%...0.7443%); 30Y (1.2533% /

-3.6bp / 1.2492%...1.264%).

- Short sterling futures have broadly rallied with reds outperforming: W (+

1.0/1.5 ticks); R (+ 1.0/2.0 ticks); G (+ 0.5/1.0 ticks); B (broadly + 0.0/0.5

ticks higher).