Reports are circulating once again.....>

GILT SUMMARY: Reports are circulating once again that cross-party Brexit talks

are close to collapse. The Shadow Brexit Secretary Keir Starmer has warned that

more than half of Labour backbenchers would not support a deal without a

'confirmatory' referendum - an option which appears to have little support from

Labour leader Jeremy Corbyn or among Tory MPs.

- The deteriorating global trade backdrop - with China responding to

Washington's tariff increase with levies on USD60bln of US goods - has further

bolstered the risk-off bid in gilts.

- Gilt yields are 2-3bp lower on the day, with the curve close to flat. Current

yield levels: 2-year 0.707%, 5-year 0.833%, 10-year 1.0997%, 30-year 1.652%.

- The Jun-19 gilt future trades at 128.24, marking a fresh low for the day.

- Having had a quiet start to the session, short sterling futures have now

rallied in line with the push higher in Euribor and Euro$ futures.

- Tomorrow will see the release of employment and average earnings data at

0930BST.