The Sun Newspaper earlier today........>

GILT SUMMARY: The Sun Newspaper earlier today reported that Prime Minister May

is considering changing this week's meaningful vote to a provisional one. This

may be seen as a way of biding time for Attorney General Geoffrey Cox to provide

a more favourable legal opinion on the backstop, or perhaps paving the way for a

third vote on May's deal.

- May's previous defeat over her Brexit deal was unprecedented. Despite the PMs

ability to cling on to power, her position would become untenable if her deal is

voted down for a second time. At that point parliament would seize control of

Brexit and seek to unravel her deal.

- Gilts have rallied this morning with yields ~1.5-2.0bp lower. Current yield

levels: 2-year 0.725%, 5-year 0.7699%, 1.171%, 30-year 1.688%. The curve trades

close to flat on the day.

- Inflation breakevens similarly trade close to unch.

- Short sterling futures are broadly 1.0-3.0 ticks higher with marginal

flattening of the strip.