There is some speculation that PM......>

GILT SUMMARY: There is some speculation that PM Boris Johnson could hold a snap

election immediately after a no-deal Brexit in a bid to secure a fresh mandate

before the full economic impact of such a scenario is felt by voters.

- There will be a slew of data released tomorrow, which will include 2Q/June

GDP, industrial production, construction output, index of services and

international trade data for June.

- The Sep-19 gilt future trades at 133.89, down 54 ticks from Wednesday's close

and 16 ticks off the day's low; L-H: 133.73-134.17.

- Gilts have sold off with yields 2-6bps higher on the day. Cash yields (Last /

1d chg / L..H): 2Y (0.4686% / +2.2bp / 0.4602%...0.4848%); 5Y (0.3676% / +3.9bp

/ 0.3554%...0.3799%); 10Y (0.5268% / +4.3bp / 0.5095%...0.5379%); 30Y (1.1857% /

+5.5bp / 1.1641%...1.1963%).

- The curve has bear steepened: 2s10s (4.6bp / 1.9bp / 3.5bp..4.8bp); 2s30s

(70.5bp / 3.2bp / 68.5bp..70.8bp).

- The short sterling futures strip has steepened: W (broadly - 0.0/0.5 ticks

lower); R (- 1.0/3.0 ticks); G (- 4.0/4.5 ticks); B (- 4.5/6.0 ticks).