Prime Minister Theresa May has.........>

GILT SUMMARY: Prime Minister Theresa May has challenged opposition leader Jeremy

Corbyn to a live TV debate on the Brexit withdrawal bill. Televised political

debates between party leaders are rare in the UK, so this event is highly

significant. May will look to build support for the Brexit withdrawal agreement,

as well as attempting to highlight the lack of a credible alternative from the

Labour Party.

- Gilts have traded in a relatively tight range this morning with the early

rally subsequently reversing. The 2-year benchmark yield trades at 0.756% up

from a morning low of 0.737%, while the 10-year yield trades at 1.401% up from

1.388%.

- The curve has flattened slightly with the 2s10s spread inching down to 63.8bps

from 64.3bps.

- The Dec gilt future trades at 122.87 off a morning high of 123.00.

- Inflation breakevens have edged lower with the 5-year trading down to 3.072%

from 3.101%.

- The short sterling futures strip is broadly 1.0-2.0 ticks lower.