The EU has told that UK that if MPs....>

GILT SUMMARY: The EU has told that UK that if MPs do not vote through PM May's

Brexit deal, it will have until April 12 to decide whether to request a further

extension or leave with no deal. 

- French President Emmanuel Macron was quoted by the Daily Telegraph as saying

May's deal has a '5 per cent' chance of passing next week.

- Chair of the 1922 Committee of Conservative backbenchers Graham Brady is

reported to have informed May that a growing number of MPs want her to stand

down.

- Despite opening lower, gilts quickly resumed yesterday's rally. Yields are now

<1.5 lower on the day. Current yield levels: 2-year 0.682%, 5-year 0.810%,

10-year 1.058%, 30-year 1.535%. The very long-end of the curve has flattened

with 2s30s edging down to 84.1bp from 86.5bp.

- The Jun-19 gilt future trades at 128.65, 36 ticks off the high. 

- Short sterling futures continue to push higher, although price action is more

contained than yesterday. Whites/reds are up 1.0-2.5 ticks.