There has been a notable shift in......>

GILT SUMMARY: There has been a notable shift in opposition to PM Theresa May's

Brexit deal in recent days. Several high-profile members of the Eurosceptic ERG

block in parliament have indicated that they could support the deal when

parliament votes on (or before) March 12. This has further reduced the perceived

risk of a disorderly no-deal.

- PM May has also beefed up a previously vague offer to provide poorer areas of

the UK with financial support in a bid to secure Labour backing. A Stronger

Towns Fund was launched today with a pledge to provide GBP1.6bln in financial

assistance.

- Gilts opened a touch weaker but have subsequently traded sideways. Current

yield levels: 2-year 0.803%, 5-year 1.010%, 10-year 1.305%, 30-year 1.812%.

- The Mar-19 gilt future trades at 123.03 at the top of the morning range.

- Short sterling futures are broadly 0.5-1.0 ticks lower. 

- The data calendar is relatively sparse this week. The Services and Composite

PMIs for February will be published tomorrow.