PM Theresa May's bid to get her........>

GILT SUMMARY: PM Theresa May's bid to get her twice-rejected Withdrawal

Agreement passed by parliament is intensifying, with senior ministers in

discussions with the DUP to drum up support. It has been reported that the

government could pledge additional spending for Northern Ireland as an

inducement. Chancellor of the Exchequer Philip Hammond and the influential

Attorney General Geoffrey Cox are said to be involved in the talks. 

- Having started off on a weak footing, gilts have rallied since late morning.

Yields are now ~0.5-1.8bp lower on the day. Current yield levels: 2-year 0.754%,

5-year 0.933%, 10-year 1.205%, 30-year 1.713%. The curve has flattened slightly

with 2s30s trading down to 95.0bp from 97.1bp.

- The Jun-19 gilt future trades at 126.95, 18 ticks off the high.

- The short sterling futures strip has flattened slightly with whites up 0.5-1.0

ticks and greens/blues up 3.0-4.5 ticks.

- Next week will see the release of labour market data for January and

inflation/retail sales data for February. The Bank of England monetary policy

meeting will take place on  Thursday.