- Political pressure is mounting on....>

GILT SUMMARY: - Political pressure is mounting on Theresa May as rival camps in

government and parliament have threatened over the weekend to scupper the

pending withdrawal agreement. Even in the event that May can get her cabinet on

side, securing parliamentary support for any deal will prove challenging and

ultimately poses a risk to her leadership. 

- Gilts rallied from the open but have given back some of the gains over the

past two hours. The 2-year gilt trades at 0.737% down from 0.771% while the

10-year yield has pushed down to 1.441% from 1.480%.

- The curve has flattened with the 2s10s spread narrowing to 69.7bps from

70.6bps.

- The Dec gilt future trades at 122.38 and just off the 122.47 high of the day.

- Inflation breakevens have pushed higher with the 5-year benchmark trading up

to 3.037% from 2.995% and the 10-year up to 3.173% from 3.134%.

- The short sterling futures strip has flattened with whites up 1.0-4.0 ticks

and greens/blues up 6.0-7.0 ticks.