Speculation is mounting over whether...>

GILT SUMMARY: Speculation is mounting over whether PM Theresa May will announce

her departure date tomorrow in a bid to get her withdrawal agreement passed by

parliament.

- A commitment by the PM to step down, coupled with leading eurosceptic Jacob

Rees-Mogg backing the deal, could significantly improve the parliamentary

arithmetic. 

- However, the lack of DUP support remains a major obstacle, and one which does

not appear surmountable following comments from the party's spokesman likening

May's deal to being locked in a prison.

- Gilts yields have pushed higher today, with the very long-end leading the

charge. Current yield levels: 2-year 0.658%, 5-year 0.791%, 10-year 1.012%,

30-year 1.527%. The 30-year benchmark has underperformed the curve, with the

2s30s spread widening to 86.0bp from a low of 83.2bp.

- The Jun-19 gilt future trades at 129.18 and near the lows of the day.

- Short sterling futures are 2.5-3.5 ticks lower