PM Theresa May is due to speak with....>

GILT SUMMARY: PM Theresa May is due to speak with European Council President

Donald Tusk later on today in an attempt to gauge the feasibility of reopening

the negotiation of the Withdrawal Agreement and the contentious Irish Backstop. 

- So far Brussels has continued to maintain that further negotiation is not

possible. European Commission President Jean-Claude Juncker has stated that the

EU 27 will not abandon the Irish backstrop and that the current Brexit deal is

the only one available.

- The reaction in the gilt market to yesterday's parliamentary votes has been

limited with yields down <1.5bp on the day. Current yield levels: 2-year 0.766%,

10-year 1.253%, 30-year 1.735%.

- The Mar-19 gilt future trades at 123.28 near the top of the day's range.

- The early morning uptick in inflation breakevens stabilised by midday. The

5-year currently trades at 3.083% and the 10-year at 3.146%.

- Short sterling futures are up 1.0-2.5 ticks with greens/blues marginally

outperforming.