Pressure is once again intensifying....>

GILT SUMMARY: Pressure is once again intensifying on Prime Minister Theresa May

to resign following the heavy losses notched up by the Conservative Party in

local elections. Despite demands from Conservative backbenchers to announce a

formal departure date, May has today reiterated that she will only step down

once her Brexit deal is agreed. 

- This is unlikely to placate MPs and could tip the balance in favour of the

party re-writing its own rules for electing a leader. 

- Gilts have traded in a relatively wide 4-5bp range today. The rally petered

out late morning, with yields gradually pushing higher in the afternoon. Current

yield levels: 2-year 0.730%, 5-year 0.867%, 10-year 1.126%, 30-year 1.657%.

- The Jun-19 gilt future trades at 127.91 in the middle of the day's range.

- Short sterling futures are 2.0-3.0 ticks higher.