Providing a tentative boost to PM......>

GILT SUMMARY: Providing a tentative boost to PM Theresa May's attempts to secure

parliamentary support for her Brexit deal, arch Brexiteer and leader of the

eurosceptic European Research Group Jacob Rees-Mogg appears to have dropped his

opposition to the Irish backstop. In a sign that his position is softening, Mogg

told the FT he would consider other legal fixes.

- For the time being cable is the main beneficiary from a perceived reduction in

no-deal risk. 

- Having initially sold off shortly after the open, gilt yields subsequently

pulled back towards yesterday's close. Current yields 2-year 0.784%, 10-year

1.205%, 30-year 1.739%. The curve trades close to flat on the day.

- The Mar-19 gilt future trades at 123.96 near the top of the morning range.

- Inflation breakevens have made a marginal push lower. The 10-year benchmark

has traded down to 3.037% from a high of 3.055%.  

- Short sterling futures are broadly 0.5-2.5 ticks lower with slight

underperformance in reds/greens.