Risk-off sentiment from the............>

GILT SUMMARY: Risk-off sentiment from the resignation of Gary Cohn and Newswire

headlines on EU's draft guidelines on future EU/Uk trade relationship supported

rally in Gilts and flattened the yield curve during morning session.

- 2-yr Gilt yield is -1.7bp at 0.797%, 5-yr -2.6bp at 1.15%, 10-yr -3.4bp at

1.487%, 30-yr -3.3bp at 1.895% and 50-yr -3.2bp at 1.677%.

- Gilts initially opened a touch lower, but quickly squeezed higher as markets

reacted to news that Gary Cohn has resigned over disagreement with Trump over

trade tariffs, that the EU said PM May's speech was a "change in tone but not in

substance", and large Gilt redemption and coupon payments.

- June Gilt then rallied to fresh session high, while Sterling slipped as

Bloomberg managed to get hold of the EU's draft guidelines on future EU/UK trade

agreement and concluded that it falls short of what the UK wants and can only

offer a FTA on service under host state rules.

- Breakevens are 0.8bp to 1.4 tighter/curve flatter, while swap spreads are

steady to 2bp wider, led once again by the movement in the 2-yr.