Reflecting growing unease among some...>

GILT SUMMARY: Reflecting growing unease among some Conservative MPs at the

prospect of a Boris Johnson government, Foreign Office Minister Sir Alan Duncan

has announced his resignation this morning. This follows comments from

Chancellor of the Exchequer Philip Hammond over the weekend that if Boris

Johnson becomes the next prime minister he will resign his post before being

removed.

- The Sep-19 gilt future trades at 131.65, up 16 ticks from Friday's close and

10 ticks off the day's high; L-H: 131.36-131.75.

- Gilts have rallied with yields 1-2bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.495% / -0.7bp / 0.4863%...0.5002%); 5Y (0.4968% / -1.3bp /

0.4895%...0.5012%); 10Y (0.7204% / -1.3bp / 0.7121%...0.7249%); 30Y (1.3405% /

-1.9bp / 1.3333%...1.3453%).

- Short sterling futures have broadly rallied with greens outperforming: W

(broadly + 0.0/1.0 ticks higher); R (+ 1.5/2.5 ticks); G (+ 2.0/2.5 ticks); B (+

1.5/2.5 ticks).