PM Theresa May earlier stated that.....>

GILT SUMMARY: PM Theresa May earlier stated that US President Donald Trump's

comments about four female Democrats were "completely unacceptable". Although

there is no direct impact from this intervention, May's riposte nonetheless

highlights the increased strain on the "special relationship" amid the wider

breakdown in global political and economic cooperation. 

- Earlier in the session anti-Brexit campaigner Gina Miller threatened to take

the UK government to court if the new prime minister attempts to prorogue

parliament.

- The Sep-19 gilt future trades at 130.86, up 45 ticks from Friday's close and

trading near best levels; L-H: 130.35-130.9.

- Gilts have rallied with yields 3-5bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.5578% / -3.3bp / 0.5528%...0.5642%); 5Y (0.5766% / -4.8bp /

0.5747%...0.5836%); 10Y (0.7902% / -4.4bp / 0.7884%...0.7974%); 30Y (1.3989% /

-4bp / 1.3971%...1.4056%).

- The short sterling futures strip has flattened: W (broadly + 0.0/2.5 ticks

higher); R (+ 2.5/3.5 ticks); G (+ 3.5/4.0 ticks); B (+ 4.0/4.5 ticks)