Speaker of the House of Commons John...>

GILT SUMMARY: Speaker of the House of Commons John Bercow has warned that the

government cannot present the same withdrawal agreement to parliament that was

voted down last week. 

- This would appear to indicate that the government will need to provide

substantive changes to the Brexit bill in order for a new vote to go ahead.

- A government spokesperson earlier confirmed that discussions with the DUP

continued this morning.

- Cable weakened and gilts rallied on the back of Bercow's comments. Gilt yields

are broadly 2.3-3.2bp lower on the day. Current yield levels: 2-year 0.735%,

5-year 0.912%, 10-year 1.179%, 30-year 1.688%. The curve has flattened slightly

with the 2s10s spread narrowing around 1bp from widest levels.

- The Jun-19 gilt future trades at 127.24 near the top of the day's range.

- The short sterling futures strip is 0.5-3.0 ticks higher with slight

outperformance in greens.