PM Theresa May is reported to have.....>

GILT SUMMARY: PM Theresa May is reported to have made a compromise offer to

Labour in a bid to get a Brexit deal passed in parliament, but reports suggest

that this does not include Labour's preferred customs union.

- Conservative MP and vice-chair of the eurosceptic European Research Group Mark

Francois has argued that an indicative vote of no-confidence in the PM should

take place this week. Having fended off the last formal challenge to her

leadership, May is immune from another direct challenge until December according

to party rules. An indicative vote would be a means of encouraging May to step

aside.

- The gilt curve has steepened slightly this afternoon as the short-end has

rallied. The 2s30s spread has widened to 94.7bp from a low of 93.6bp. Current

yield levels: 2-year 0.695%, 5-year 0.844%, 10-year 1.105%, 30-year 1.650%.

- The Jun-19 gilt future trades at 128.13, near the middle of the day's range.

- Short sterling futures are 1.0-1.5 ticks higher.