The UK's constitutional crisis.........>

GILT SUMMARY: The UK's constitutional crisis continues to deepen. With the PM's

closest advisor Dominic Cummmings appearing willing to side-line parliament in a

no-deal Brexit scenario, the Guardian reports that a cross-party group of MPs is

considering forcing parliament to sit during the Autumn recession, which would

provide an additional three-weeks to try and prevent no-deal.

- Following yesterday's robust rally, gilt markets have given back some of the

gains this morning.

- The Sep-19 gilt future trades at 134.02, down 41 ticks from Wednesday's close

and 13 ticks off the day's high; L-H: 133.89-134.15.

- Cash yields are 2-3bps higher on the day. Cash yields (Last / 1d chg / L..H):

2Y (0.468% / +2.1bp / 0.4622%...0.4752%); 5Y (0.3604% / +3.2bp /

0.3551%...0.3691%); 10Y (0.5124% / +2.8bp / 0.5073%...0.5211%); 30Y (1.1618% /

+3.1bp / 1.1567%...1.1709%). The curve has bear steepened: 2s10s (3.6bp / 0.9bp

/ 3bp..4.5bp); 2s30s (68.7bp / 1.3bp / 66.7bp..69.6bp).

- The short sterling futures strip has steepened: W (broadly flat); R (- 1.0/3.5

ticks); G (- 4.0/4.5 ticks); B (- 4.5/5.0 ticks)