PM Theresa May's plan to secure a......>

GILT SUMMARY: PM Theresa May's plan to secure a short Article 50 extension

appears to have been rebuffed by EU leaders with reports now suggesting that the

UK will be offered a far lengthier extension - perhaps as long as a year. 

- France has indicated that under this scenario the UK would need to meet strict

conditions to prevent Westminster interfering with EU business.

- Brexit secretary Stephen Barclay has refused to be drawn into speculating on

whether PM May should resign in the event that she agrees to a long extension.

- Gilts have sold off since the open with yields ~2bp higher on the day. Current

yield levels: 2-year 0.712%, 5-year 0.861%, 10-year 1.121%, 30-year 1.651%.

- The Jun-19 gilt trades at 127.96, 3 ticks off the day's low.

- Short sterling futures are 0.5-1.5 ticks lower.

- Manufacturing production, construction output and monthly GDP for February

surprised higher, while the index of services printed in line with consensus.