PM Theresa May is due to meet her......>

GILT SUMMARY: PM Theresa May is due to meet her cabinet today amid mounting

pressure to sever cross-party talks with the opposition Labour party. Elsewhere,

May's chief Brexit negotiator is heading to Brussels to discuss the possibility

of redrafting the declaration on the UK's future relationship with the EU.

- This morning's Labour market data did not move the meter. Job growth was

weaker than expected (99k 3m/3m vs 140k survey alongside a lower unemployment

rate 3.8% vs 3.9%).

- The Jun-19 gilt future trades at 128.17, down 8 ticks from Monday's close and

3 ticks off the day's high; L-H: 128.02-128.2.

- Gilts have rallied with trading in a 1bp range. Cash yields (Last / 1d chg /

L...H): 2Y (0.7084% / +0.1bp / 0.7048%...0.7118%); 5Y (0.8339% / +0.1bp /

0.8311%...0.8386%); 10Y (1.1062% / +0.6bp / 1.1041%...1.1122%); 30Y (1.657% /

+0.5bp / 1.6552%...1.6632%).

- Short sterling futures have broadly rallied with greens outperforming: W

(broadly flat); R (flat/+0.5 ticks); G (+ 0.5 ticks); B (trades mixed).