Reports of a rift in the Tory..........>

GILT SUMMARY: Reports of a rift in the Tory cabinet and overnight sell-off in US

and Asian equities has led to a risk-off tone in markets and helped push Gilts

higher at the open. The 10-yr part of the yield curve is seen leading the move

with yield 3.1bp lower at 1.234%.

- The Telegraph reported last night that there is a new "revolt" within the

cabinet as leading Brexiteers (Boris Johnson and Michael Gove) are worried that

PM May is forcing through a soft Brexit. May was accused of trying to "bounce"

the Cabinet into agreeing to "regulatory alignment" between Ulster and Ireland.

- Latest newswire headlines though suggest that Ireland is willing to comprise

on the the boarder issue, by offering a clarification on the wording to try and

get the deal agreed.

- Also adding to political risk and risk-off tone was news that UK's MI5 and

police foiled a terrorist plot to assassinate PM May. 

- No UK data today to distract markets from the brexit negotiations today and

with David Davis and Philip Hammond due to appear in front of Westminster

committees today, there will be no shortage of headlines crossing the wires.