The chief engineer of yesterday's......>

GILT SUMMARY: The chief engineer of yesterday's parliamentary indicative votes,

Conservative MP Oliver Letwin, has suggested that the House of Commons could

still coalesce around a viable alternative to PM May's deal.

- May is expected to reach out again to the DUP in a bid to get her deal passed,

but given the Northern Ireland party's uncompromising approach to the backstop

and refusal from Brussels to reopen the negotiated Withdrawal Agreement, it is

difficult to see what the PM could offer to gain DUP support.

- Gilts have rallied this morning with yields 2-4bp lower on the day. Current

yield levels: 2-year 0.627%, 5-year 0.752%, 10-year 0.985%, 30-year 1.522%. 

- The very long-end of the curve has steepened with 2s30s trading at 88.7bp from

a low of 85.5bp.

- The Jun-19 gilt future trades 129.50, 4 ticks off the low.

- Inflation breakevens have pushed higher with the 5-year benchmark trading up

to 3.20% from 3.18%.

- Short sterling futures are broadly 0.5-1.5 ticks higher.